DLI 2.0: Govt plans sops, local sourcing mandates to push chip demand

The government is considering targeted financial incentives for developing chipsets for 25 electronic product categories and introducing strict local sourcing rules for certain products like TV sets and air-conditioners, as it seeks to ensure demand for indigenously produced chips, officials in the know said.

The incentives are planned under the updated design-led incentive (DLI) scheme. The entire exercise is based on the view that demand for chips is key for the success of the Indian semiconductor story, they said.