India Passes Semiconductor Scheme To Bring Rs 76,000 Crore Incentives
The Indian cabinet just cleared the Rs 76,000 crore semiconductor incentive scheme. According to the scheme, India will set up over 20 foundries or fabrication units in the next six years.
For now, the government is aiming for two fabrication units for display along with 10 units for component design and production. The policy also includes training over 85,000 semiconductor engineers. Aside from big tech, India will also incentivize startups to work on semiconductor development.
Startups Part Of Semiconductor Scheme Incentives
Semiconductors are chips that are used in everyday electronics. The recent chip shortage that hit the world during COVID-19 also led to price rises and manufacturers holding back on innovation. With the Semiconductor Incentives scheme, the government aims to make India a tech hub over the coming years.
In this, the government is not only incentivizing big companies but supporting startups too. Electronics and IT Minister Ashwini Vaishnaw talked about a design-linked incentive, where the government will bear 50% of the cost.
Moreover, the government’s fabrication units are expected to generate 35,000 high-quality jobs and over 1 lakh jobs as indirect employment. The IT Minister also announced that the center would set up the India Semiconductor Mission to boost the sector.
Incentives worth Rs 2.3 lakh crores will put India in a commanding position in the semiconductor sector. According to the minister, India has reached a $75 billion electronics manufacturing mark. He says that the country will touch the $300 billion mark in the next 6 years.
Digital Payments Incentivized
The session also saw other things aside from the massive government incentivizing the semiconductor industry in India. The main attraction of these is the Rs 1,300 crore incentive to promote digital payments via BHIM UPI and Rupay.
With streamlined digitization and aggressive expansion, India is banking a fortune on the semiconductor industry. It is also a smart move, considering major economies like Japan and the United States have moved towards taking control of the chip industry.
India’s participation is likely to create more jobs, better infrastructure, and more room for home-grown tech in the country.
