India considers policy mandate to procure locally made chips

One of the primary objectives of the government's policy initiative is to meet the escalating demand for semiconductor chips within the country through local production.

In a bid to bolster domestic chip production and reduce reliance on imports, the government is contemplating the implementation of a policy mandate to procure domestically made semiconductor chips.

Sources have indicated that discussions are underway to formulate a comprehensive policy framework aimed at incentivizing the consumption of locally manufactured chips. The proposed policy is expected to encourage the adoption of domestically produced semiconductor chips across various sectors, including electronics, telecommunications, and automotive industries.

One of the primary objectives of the government's policy initiative is to meet the escalating demand for semiconductor chips within the country through local production. By promoting indigenous chip manufacturing, the government aims to enhance self-sufficiency in critical technology sectors while fostering innovation and job creation domestically.

Importantly, the proposed policy does not entail imposing restrictions on the import of chips to meet domestic demand. Instead, it seeks to create a conducive environment for the growth of the domestic semiconductor industry by providing policy support and incentives to local manufacturers.

The move to prioritise domestically made chips aligns with the government's broader agenda of promoting economic resilience and reducing dependence on foreign suppliers for essential components. Recent global supply chain disruptions have underscored the importance of building robust domestic capabilities in strategic sectors such as semiconductor manufacturing.