The Union cabinet is expected to give its approval to a scheme worth Rs 25,000 crore for semiconductor manufacturing. However, the decision on the PM PRANAM scheme has reportedly been postponed. The cabinet meeting is currently ongoing, and the official announcements are anticipated to be made on Wednesday afternoon.
The government has been actively interested in incorporating semiconductors into the production-linked incentive (PLI) scheme. In May, Finance Minister Nirmala Sitharaman emphasized the government’s focus on incentivizing and facilitating investments in India through PLI schemes. Initially covering 14 sectors, the PLI scheme is expanding to include semiconductors and solar components.
The Finance Minister has been encouraging Japanese investors to consider investing in India, highlighting the country’s efforts to relax various restrictions and create a more favourable business environment. Sitharaman recently engaged with business leaders on the subject of “Rising Investment Opportunities: Destination India.”
Initially, the government had allocated incentives worth Rs 1.97 lakh crore for various PLI schemes over five years, aiming to stimulate domestic manufacturing.
However, Reuters reported on Tuesday that there are currently no plans for a PLI scheme specifically dedicated to semiconductors.