PLI Scheme for Semiconductors Praised by CII President; Urges States to Accelerate Reforms

The President of the Confederation of Indian Industry (CII), Sanjiv Puri, has strongly endorsed the Government of India’s efforts to promote domestic semiconductor manufacturing under the Production Linked Incentive (PLI) scheme. At the same time, he emphasized the need for swift state-level reforms to remove persistent bottlenecks and accelerate India’s transformation into a global semiconductor hub.

Government’s Strategic PLI Push

The semiconductor-focused PLI scheme, introduced as part of the broader India Semiconductor Mission (ISM), has been designed to attract large-scale investments in chip fabrication, assembly, testing, and packaging. The Centre has earmarked a significant outlay of ₹76,000 crore for the development of this critical sector, considering semiconductors as the backbone of modern electronics, AI, defence, and clean energy applications.

According to Puri, this move is not just timely, but essential, especially as global companies look to diversify supply chains away from China and Taiwan. The strategic opportunity for India is immense, given its large talent pool in electronics design and software engineering.

CII’s Support and Observations

Speaking at an industry interaction, the CII chief praised the clarity of India’s vision and its commitment to creating a vibrant semiconductor ecosystem. Puri mentioned that recent announcements involving semiconductor manufacturing facilities by global and Indian players—such as the Micron investment in Gujarat and Tata Electronics’ growing involvement—reflect growing investor confidence.

However, he cautioned that unless state governments move swiftly to upgrade infrastructure, simplify regulatory frameworks, and ensure timely clearances, India risks losing this global window of opportunity.

Call for Urgent State-Level Reforms

Puri stressed the need for synchronized efforts between the Centre and the states. Key areas requiring urgent attention include:

• Single-window clearance systems at the state level

• Stable and predictable policies for land, power, and water availability

• Special Economic Zones (SEZs) and plug-and-play infrastructure for electronics clusters

• Skill development programs tailored for semiconductor fabrication and testing

• Timely disbursement of incentives and ease of doing business at the local level

States like Gujarat, Tamil Nadu, Karnataka, and Telangana are already making strides in attracting electronics and chip manufacturing investments. However, disparities in execution and pace of reforms are evident across other regions.

Semiconductor Sector: Key to India’s Tech Future

The Indian electronics market is projected to surpass $300 billion by 2026, and domestic semiconductor manufacturing will be crucial for reducing import dependency. The PLI scheme aims to strengthen the entire value chain—from chip design to manufacturing and packaging.

Puri noted that semiconductor self-reliance will have spillover benefits for other sectors including defence, renewable energy, 5G, automotive electronics, and smart manufacturing.

The CII President’s remarks reflect the growing consensus in India’s industry and policy circles: the PLI scheme has laid a strong foundation, but coordinated execution at the state level will determine India’s success in the global semiconductor race. As India looks to establish itself as a reliable and competitive player in the high-tech manufacturing world, seamless Centre-State collaboration will be key.