The government has introduced amendments to the Production-Linked Incentive (PLI) scheme for semiconductor manufacturing, with the aim of increasing its appeal to global investors. Previously, the approval process involved the MeITY Secretary for applications up to Rs 100 crore, and the Union Minister for Electronics and IT for applications exceeding that amount.
As per a recent government notification, the Union Cabinet will now be responsible for issuing approvals for establishing compound semiconductors and display fabs assembly and test units under the Ministry of Electronics and IT’s PLI scheme. This change signifies a shift in the approval process for these units, indicating the government’s efforts to enhance India’s attractiveness as a semiconductor manufacturing destination and reduce import dependency.
The PLI scheme, initially introduced in December 2021 with an allocation of ₹76,000 crore (US$10 billion), underwent modifications in September of the following year to offer more enticing incentives. These modifications were aimed at attracting global investors to the Indian semiconductor industry.
The government expresses confidence that the revised PLI scheme will effectively attract significant investments in semiconductor manufacturing in India. Additionally, the government is actively working on other initiatives, such as establishing a semiconductor design center and a semiconductor testing facility, to further strengthen the semiconductor ecosystem.
Paragraph 5: These efforts are part of the government’s broader strategy to position India as a prominent global manufacturing hub. A key target of this strategy is to increase India’s manufacturing output to Government Amends PLI Scheme for Semiconductor Manufacturing
 scheme for semiconductor manufacturing,){kind=link}