The Indian electronics industry and associations have welcomed the Cabinet approval of Rs.76,000 crore product-linked incentive (PLI) scheme for semiconductors on Wednesday, under which Rs.2.3 lakh crore of incentives will be given.
"This will enable India to become an electronics hub and encourage corporates to start manufacturing in India. It is a big step to bring India on the world map of the semiconductors industry as it will pave the path for the industry to broader the horizon of research, manufacturing and export," Sanjay Gupta, Managing Director, NXP India, said.
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In the long-term, issues like a sudden surge in demand for semiconductors will also be addressed, adding that the move will also make the Indian manufacturers globally competitive to attract investment in core competency and cutting-edge technology.
This strategic and pathbreaking move shall lay foundations to a much needed indigenous and integrated electronics design and manufacturing ecosystem - the bedrock of any developed economy in the digital and Industry 4.0 era, said Baba Kalyani, Chairman and Managing Director Bharat Forge Ltd.
"This will now set-in-motion a longer-term process to transform India into an innovation-driven economy with a focus on high-end capability, skills and value-creation, here in India," he said.
According to Srinivas Satya, President, Applied Materials India, the country needed an audacious goal and an integrated approach to kickstart its semiconductor industry.
"The current semiconductor shortage has made economies realise the strategic role of these chips in development. India, early on in the game, acknowledged the need to create a semiconductor ecosystem of its own. This is a positive move towards uplifting the industry and economy," he said.
Anku Jain, Managing Director at MediaTek India, said that the plan to incentivise semiconductor manufacturing would empower Indian smart devices space while paving the path towards the country becoming a global electronics hub besides offering avenues for innovation and research and skill-based employment.
“MediaTek reiterates its commitment to enable the ‘Make in India’ narrative by collaborating with the Indian Smart device ecosystem and boosting 5G capabilities targeted at both Indian and global consumers,” he said.
"Building blocks of the electronic ecosystem has already been launched...We will surely not lose our sight on the $300 billion output target by 2025-26," Pankaj Mohindrro, Chairman, India Cellular and Electronic Association (ICEA), said.