Information and Broadcasting Minister Anurag Thakur said a budget of Rs 76,000 crore has been approved for designing and manufacturing semiconductor chips in India.

The Union Cabinet on Wednesday approved the production linked incentive (PLI) scheme to encourage manufacturing of semiconductor and display boards. Information and Broadcasting Minister Anurag Thakur said a budget of Rs 76,000 crore has been approved for designing and manufacturing semiconductor chips in India, the ambitious project, titled Programme for Development of Semiconductors and Display Manufacturing Ecosystem, to be spent over a span of six years.

A government statement said the project will have a multiplied effect across different sectors and will help in deeper integration to the global value chain. It would contribute significantly towards achieving a $5 trillion dollar economy and $5 trillion GDP (gross domestic product) by 2025.

Union Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing and testing of the microchips and develop a complete ecosystem.

Through this scheme, the central government wants to develop the country as an electronic hub, because the lack of microchips directly affects the production of industries.

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A comprehensive program has been approved for India’s self-reliance in the semiconductor sector. The Centre said that India has become the largest mobile manufacturing country in the world. The government says that it will play a big role in taking the country forward in the electronics sector.

“We want 20 semiconductor units in India over the next 2 years. As part of the scheme, incentives worth Rs 2.3 lakh crore will be provided to position India as a global hub,” Telecom minister Ashwini Vaishnaw said.

The Centre will set up the India Semiconductor Mission to drive this sector.

Meanwhile, the Cabinet also approved incentives worth Rs 1,300 crore for promotion of small digital payment through BHIM UPI and Rupay.

The scheme has been approved to provide incentives to encourage digital transactions, Anurag Thakur said.