India eyes seat at global tech patents table with Rs. 34,228 crore (US$ 4 billion) design incentive scheme

The Indian government plans to introduce a design-linked incentive (DLI) scheme worth Rs. 34,228 crore (US$ 4 billion) to boost the country’s electronics design capabilities and reduce reliance on imports. The scheme will run over several years and aims to support companies across 30 semiconductor and 30 electronics categories. Incentives will be provided based on capital investments and company turnover. The goal is to create an ecosystem that encourages tech and design patents, increasing industry revenue and protecting the country from global developments that may disrupt imports of key components. A task force report submitted to the Ministry of Electronics and Information Technology (Meity) in December is currently being assessed. It is expected to be approved by the cabinet in the coming weeks.

The proposed scheme is part of a broader effort to build world-class technology companies and reduce India’s import dependency. The existing DLI scheme, launched in 2021 under Meity’s India Semiconductor Mission (ISM), offered less than Rs. 103 (US$ 12 million) in incentives over five years to five selected companies. The new scheme aims to incentivise product design, fabless chipmakers, original design manufacturers (ODMs), and original equipment manufacturers (OEMs) in India. Products proposed to be included are modems, Wi-Fi chips, 5G radio frequency receivers, power electronics for electric vehicles, and more. The government aims to build domestic brands that can serve the domestic market and contribute to exports, ensuring balanced growth and reducing vulnerability to geopolitical risks.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.