MeitY in Final Talks to List Products for DLI 2.0 Launch by Year-End

The Ministry of Electronics and Information Technology (MeitY) is in the final stages of listing specific products and devices for the imminent launch of Design Linked Incentive (DLI) 2.0, expected by year-end 2025. This initiative aims to accelerate domestic semiconductor chip production targeted at consumer electronics that can be swiftly absorbed by the Indian market.

MeitY is collaborating with the Department for Promotion of Industry and Internal Trade (DPIIT) and the Commerce Department to map domestic demand for about 30 key products, including televisions, air conditioners, smart power meters, refrigerators, telecom equipment, and a range of Internet of Things (IoT) devices.

The scheme focuses on encouraging local sourcing mandates and creating a ready market for domestically produced chips, thereby supporting semiconductor industry investments tied to these products.

Launched in 2021, the original DLI scheme provides financial incentives and design infrastructure to boost India's chip design ecosystem. The 2.0 version sharpens this focus by targeting product categories where chip consumption is high and demand is robust within the domestic market.

So far, 23 chip design projects have been officially sanctioned under the scheme, with support extended to startups, MSMEs, and academic institutions to bolster innovation and manufacturing capabilities.

This dual strategy—combining financial incentives with regulatory mandates—is designed to expedite India’s semiconductor ecosystem development, fostering manufacturing scale and technological advancement in collaboration with industry stakeholders.

The DLI 2.0 launch aligns with India’s broader objectives to become a globally competitive semiconductor hub, nurturing local innovation while meeting rapidly growing market demand for chips in electronics and smart devices.