India’s push to bolster its domestic electronics manufacturing is gaining momentum. The government is reportedly considering expanding its Design Linked Incentive (DLI) scheme, version 2.0, to include chipsets crucial for at least 25 consumer electronic products. This strategic move aims to stimulate local production of these vital components, reducing reliance on imports and fostering a more robust and self-sufficient tech sector.

The inclusion of chipsets under DLI 2.0 represents a significant step. Currently, the scheme focuses on finished products. Expanding it to encompass the core components will likely attract substantial investment in domestic chip design and manufacturing capabilities. This could lead to the creation of new jobs and contribute to a more competitive Indian electronics market. The anticipated incentives are expected to incentivize both established players and startups to engage in chipset development tailored to the specific needs of the Indian consumer electronics market.

While specifics regarding the financial incentives and qualifying criteria remain undisclosed, the move signals a clear commitment to strengthening India’s technological independence. The success of this initiative hinges on several factors, including the availability of skilled workforce, access to advanced manufacturing infrastructure, and the creation of a supportive regulatory environment. However, if implemented effectively, the expansion of DLI 2.0 to include chipsets could mark a turning point in India’s journey towards becoming a global electronics manufacturing hub. The potential economic benefits and technological advancements are considerable, making this development a key story to watch in the Indian tech landscape. The coming months will likely bring more clarity on the program’s details and its impact on the industry.