Cabinet Likely To Approve Rs 25,000 Cr Scheme For Semiconductor Manufacturing

The Union Cabinet is likely to approve a scheme worth Rs 25,000 crore for the manufacturing of semiconductors, according to a leading media house. 

The cabinet meeting is currently in progress, and it is expected that the announcement will be made on Wednesday afternoon. 

In May, Finance Minister Nirmala Sitharaman emphasised the government's priority of providing incentives and facilitating investments in India through the expansion of the production-linked incentive (PLI) scheme schemes. This expansion would not only cover the initial 14 sectors but also include semiconductors and solar components.

To attract investments from Japanese investors, the minister expressed that India has relaxed various restrictions to enhance the ease of doing business and encourage more investments. Sitharaman engaged with business leaders on the topic of "Rising Investment Opportunities: Destination India." 

However, Reuters reported on Tuesday that currently, there are no plans for a PLI scheme specifically for semiconductors. 

Initially, the government had allocated incentives worth Rs 1.97 lakh crore over a five-year period under various PLI schemes to stimulate domestic manufacturing.