India is set to launch a $4 billion Design-Linked Incentive (DLI) program aimed at boosting electronics innovation. The initiative will focus on strengthening the nation’s position in the global tech industry by promoting high-value patents and reducing dependence on imported components, targeting 30 sectors in semiconductors and 30 in electronics manufacturing.
Spanning multiple years, the program is structured to reward companies based on their capital investment and revenue. The broader goal is to nurture an environment that promotes indigenous design capabilities, encourages research-driven growth, and shields the industry from global supply chain disruptions.
The proposal, grounded in recommendations made by a task force in December, is currently under evaluation by the Ministry of Electronics and Information Technology (MeitY). Cabinet approval is expected soon, potentially paving the way for a significant shift in India’s electronics manufacturing strategy.
This ambitious move follows the earlier iteration of the DLI scheme introduced in 2021 under the India Semiconductor Mission. That initiative offered just $12 million in incentives across five firms. In contrast, the upcoming version is designed to support a much wider scope of innovators, including fabless semiconductor companies, original design manufacturers (ODMs), and original equipment manufacturers (OEMs).
Key components that may fall under the scheme include 5G RF receivers, modems, Wi-Fi chips, and power electronics for electric vehicles. By investing in domestic design and manufacturing, the government hopes to cultivate Indian tech brands capable of catering to both local demand and international markets.
Beyond business growth, this strategy aims to fortify India’s resilience against geopolitical uncertainties and international trade fluctuations. By building a sustainable, self-reliant electronics ecosystem, India is aiming for a future where it’s not just a technology consumer, but a global leader in innovation and IP generation.
