Digital India: Centre approves scheme for designing, manufacturing semiconductor chips

As the Union Cabinet approved the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India on Wednesday, Union Ministers Anurag Thakur and Ashwini Vaishnaw held a cabinet briefing to explain the details and importance of the programme and the way it will help the country develop. 

During the Cabinet briefing, Union Minister of Information and Broadcasting Anurag Thakur informed that an ambitious project to establish a complete ecosystem of semiconductors and display manufacturing has been sanctioned and Rs 76,000 crores will be spent on this project in 6 years.

"A scheme has been approved to provide incentives to encourage digital transactions through RuPay Debit Card and BHIM UPI of small amounts. It will incur an expense of around Rs 1,300 Crores. Not only for developing nations, but for developed nation also it will set an example during the pandemic," Thakur added. 

Further elaborating on the scheme, Union Minister of Telecom and Information Technology (IT) Ashwini Vaishnaw said, "Prime Minister Narendra Modi has taken a historic decision in the field of Electronics in which the development of a complete ecosystem could take place within the country including design, fabrication, testing and packaging. It would take the investment of Rs 76,000 crore. Today we have reached USD75 billion in electronics manufacturing in 7 years. With the pace that we are moving at, in the next 6 years, we will reach USD300 billion in electronics manufacturing."

How will the scheme benefit India? 

As per a statement by the Central government, the project will have a multiplier effect across different sectors and will help in deeper integration to the global value chain. It further mentioned that the project would also contribute significantly towards achieving USD 5 trillion dollar economy and USD 5 trillion GDP (gross domestic product) by 2025.

(With ANI Inputs)