To craft India into a hub for electronics, the government plans to grant incentives of Rs.76,000 crore over the next six years for the establishment of over 20 semiconductor design, component manufacturing, and show fabrication (fab) products.

The proposal is expected to be approved by the Cabinet next week, followed by efforts whisked by the Ministry of Electronics and Information Technology (MeitY) for granular details and invite functions.

Once the approval is stamped, on the hunt for curiosity from firms to take a position, the ultimate contours of the coverage will be drawn later and marketed.

The government has been executing various Production Linked Incentive (PLI) schemes to broaden the scope of the country to rise as a manufacturing hub as well as to be an active exporter.

On the automobile front, the Automobile Component Manufacturers Association (ACMA) has announced a PLI scheme for a self-sufficient, globally competitive, and future-ready Indian automobile sector. According to Union minister Anurag Thakur, the PLI program for the vehicle and auto components industry is estimated to bring in over Rs 42,500 crore in new investment, over Rs 2.3 lakh crore in incremental output, and over 7.5 lakh extra job opportunities over a five-year period. As a result, for the following reasons, this relates to how PLI was formed.

The auto sector initiative intends to lower the cost of producing new vehicle technology in India. The incentive structure, according to Thakur, will encourage the industry to participate in the indigenous global supply chain of Advanced Automobile Technology products. The auto sector plan is open to existing automobile companies as well as new investors who are not currently in the vehicle or auto component manufacturing sector.

There is a PLI scheme for the Drone industry as well, wherein the scheme plans to aid in the strategic, tactical, and operational applications of new technology. Over the course of three years, the scheme will generate Rs 5,000 crore in investments, Rs 1,500 crore in additional eligible sales, and 10,000 new jobs.

Further, in addition to increasing local industry, there are PLI schemes for initiating new employment opportunities, which also aims to increase exports. While fiscal support for businesses would be beneficial, the government wants to recoup its investment through greater tax revenue through increased industry sales.

Commenting on the approval, Kanishka Chauhan, principal analysis analyst, Gartner says that, “If the coverage can lure a number of the foundries (fabrication items) to our nation, it might go an enormous means in making our nation self-reliant”.

The federal government's goal is to have one to two fab items for displays and ten items for developing and manufacturing pieces.