India’s Union Cabinet is reportedly expected to approve a scheme worth ₹25,000 crore for semiconductor manufacturing at a meeting currently underway.
What It Matters: A green light for the scheme would bring to fruition the government’s long-discussed plans to bring semiconductors under the production-linked incentive (PLI) scheme, which aims to incentivise and facilitate investments in India, ET NOW reported.
Finance Minister Nirmala Sitharaman had earlier highlighted the government’s priority to expand PLI schemes beyond the initial 14 sectors to bring semiconductors and solar components into the fold.
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In her interactions with business leaders, the finance minister has invited Japanese investors to explore investment opportunities in India, citing relaxed restrictions and improved ease of doing business.
However, Reuters reported that the PLI scheme for semiconductors was not currently in the pipeline.
Initially, the government had earmarked incentives worth ₹1.97 lakh crore over a five-year period to boost domestic manufacturing under various PLI schemes.
As the Union Cabinet’s meeting progresses, the announcement of the ₹25,000 crore scheme for semiconductor manufacturing is anticipated to take place on Wednesday afternoon. The development would reflect the government’s commitment to attracting investments and fostering growth in India’s semiconductor sector.
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