The Indian government has sets Rs 2.3 lakh crore to promote the manufacturing of semiconductors and other electronic components in India. The industry has been facing a shortage of semiconductors over the past few months, which makes carmakers slow down production.
Electronics such as smartphones and laptops have been suffer as well by the semiconductor shortage.
Rs 76,000 crore has been sets for producing semiconductors and displays alone.
The money will be use to promote all parts of the supply chain, including electric components, sub-assemblies and finish goods.
Rs 55,392 crore have set aside for PLI (production linked incentive) for Large Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
PLIs worth Rs 98,000 crore have also sets for allied sectors comprising ACC battery, auto components, telecom & networking products, solar PV modules and white goods.
India is dependent on foreign countries to meet its need for semiconductors.
When manufacturing plants are set up in India, the cost of producing an electronic device should significantly come down.
This move is also expect to create a lot of high-skill jobs in the country.
Also it will help quicken the process of technology down from the premium segments towards more mass market models.
Semiconductors, displays and batteries are some of the items the government is willing to promote, and this will heavily help the auto industry in India.
This incentive package could boost the adoption of electric vehicles in India as well.
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