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Design-Linked Incentive (DLI) Scheme

Design-Linked Incentive (DLI) Scheme mind map
Recent News
January 2024
Shortfall in Target
Approved 7 startups
Target was 100 over 5 years
When
Launched in 2021
Why
Boost Semiconductor Industry
Reduce import dependence
What
Financial Incentives
Product Design Linked
Up to 50% of eligible expenditure
Ceiling of ₹15 Crore
Deployment Linked
6% to 4% on net sales turnover
Ceiling of ₹30 Crore
Design Infrastructure Support
C-DAC's India Chip Centre
Where
India
Who
Government of India
Ministry of Electronics and Information Technology
Centre for Development of Advanced Computing
How
Approving startups
Providing financial and infrastructural support
Significance
Reduce import reliance
Attract investments
Create high-skilled jobs
Challenges
Limited foreign investment
Modest incentives
Long-term R&D costs
Funding landscape challenges
Way Forward
Enhance financial outlay
Revise nodal agency
Focus on broader objectives

The Design-Linked Incentive (DLI) scheme, initiated by the Indian government, is a strategic move to bolster the domestic semiconductor design industry. Its primary objectives include reducing dependence on semiconductor imports, especially from China, and fostering growth in this high-tech sector. Despite its promising goals, the scheme has experienced setbacks, notably in reaching its startup support targets. Key challenges involve limited foreign investment, modest financial incentives, and the substantial costs associated with long-term semiconductor research and development. A concerted effort to reevaluate and enhance the scheme’s financial and structural aspects could pave the way for India to emerge as a significant player in the global semiconductor industry.

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