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Implementation tracker · Scheme · MeitY

Design Linked Incentive (DLI) scheme

As of 7 October 2026, India's Design Linked Incentive scheme — up to 50% of eligible design expenditure plus a 6%–4% deployment incentive on net sales for five years — has approved 24 chip and system-on-chip design projects, of which seven chips have been fabricated, according to a Lok Sabha reply of 1 April 2026. Its notified application window ended on 31 December 2024 and ISM's page states that submissions are closed for Semicon 1.0. A deployment-linked incentive category continues under Semicon 2.0.

Furthest documented stage as of 2026-10-07: Implementation evidenced

Scope. The Union DLI scheme under Semicon 1.0, from Cabinet approval in December 2021. Excludes Semicon 2.0 Pillar 1 and the Chips to Start-up programme.

Updated · Sources checked 2026-10-07 — no material change found

Administered by Ministry of Electronics and Information Technology

Lifecycle: what is documented

Each stage is a separate claim with its own evidence. An announcement proves only that an announcement occurred; it is not evidence of the later stages.

  1. Proposed

    Not evidenced as of 2026-10-07.

  2. Announced

    2021-12-15Verified· official[1]

    Cabinet approves DLI: product design incentive up to 50% of eligible expenditure; deployment incentive 6%-4% of net sales for five years.

  3. Formally issued

    2021-12-21Verified· official[2][3]

    DLI Scheme notified in Gazette (Extraordinary No. 377); guidelines issued 2021-12-30.

  4. Effective

    Not evidenced as of 2026-10-07.

  5. Application process available

    2022-01-01Verified· official[2]

    Applications open initially for three years from 01.01.2022.

  6. Implementation evidenced

    2023-02-24Verified· official[5]

    ISM notice: three applications under the DLI Scheme approved.

    2023-05-31Verified· official[6]

    26 DLI applications received and five approved to date; window stated open till December 2024.

    2025-08-22Verified· official[7]

    23 chip-design projects sanctioned under DLI; 72 companies given EDA tool access.

    2026-04-01Verified· official[8]

    Government has approved 24 chip/SoC design projects; seven chips fabricated (Lok Sabha reply).

  7. Amended

    2022-10-21Unverified· official[4]

    ISM lists a "Design Linked Incentive Scheme" gazette entry dated 21 Oct 2022; the linked file is identical to the 2021 notification.

    Could not confirm any amendment content: the linked PDF is byte-identical to the 2021-12-21 notification.

Who is responsible

  • Ministry of Electronics and Information TechnologyOwns the Semicon India Programme. The India Semiconductor Mission (a division of Digital India Corporation under MeitY) is the nodal agency; since the 9 June 2023 gazette amendment, applications are appraised on an ongoing basis and placed by MeitY before the Union Cabinet for approval.

Latest material changes

  • 2026-04-01Lok Sabha reply: 24 chip and system-on-chip design projects approved; seven chips fabricated.
  • 2025-08-2223 chip-design projects sanctioned; EDA tool access provided to 72 companies.

Where the evidence conflicts

  • ISM lists a DLI gazette entry dated 21 October 2022, but the linked file is byte-identical to the 2021 notification; whether an amendment was made on that date, and what it said, could not be established.

What remains unknown

Questions we could not settle from documents available to us. Unknown is not "no": it means the evidence was not found, not that the answer is negative.

  • How much DLI support has been disbursed? — Disbursement totals were not found.
  • Which companies' designs were approved, and for which products? — Aggregate counts are documented; a full official list was not read.

Questions this page answers

What has the Design Linked Incentive scheme for semiconductors actually funded?
As of a Lok Sabha reply on 1 April 2026, the government had approved 24 chip and system-on-chip design projects under the DLI scheme, and seven chips had been fabricated. In August 2025 PIB reported 23 sanctioned projects and EDA tool access for 72 companies.
What does India's Design Linked Incentive scheme pay?
Two incentives, as approved by the Union Cabinet on 15 December 2021: a product design-linked incentive of up to 50% of eligible design expenditure, and a deployment-linked incentive of 6% to 4% of net sales over five years for products using the supported designs.
Is the Design Linked Incentive scheme still open for applications?
Not under Semicon 1.0. The notified window ran for three years from 1 January 2022 and ended on 31 December 2024, and ISM's DLI page states that application submission is closed. A deployment-linked incentive category continues under Semicon 2.0's design pillar, notified on 31 August 2026.
How has DLI approval grown over time?
From three applications approved by February 2023, to five of 26 received by May 2023, to 23 chip-design projects sanctioned by August 2025, to 24 chip and system-on-chip design projects approved, with seven chips fabricated, by a Lok Sabha reply of 1 April 2026.

Source register

  1. Cabinet approves Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India · official · published 2021-12-15 · origin pib:1781723
  2. Gazette: Design Linked Incentive Scheme (No. 377) · official · published 2021-12-21 · origin gazette:2021-12-21:DLI
  3. ISM: Guidelines (listing) · official · origin ism:guidelines-listing
  4. ISM: Gazette Notification (listing) · official · origin ism:gazette-listing
  5. ISM: Notices (listing) · official · origin ism:notices-listing
  6. Government invites applications for setting up Semiconductor and Display Fabs as per Modified Semicon India Programme from 1st June · official · published 2023-05-31 · origin pib:1928479
  7. Government pushes semiconductor design innovation with the Design Linked Incentive (DLI) Scheme · official · published 2025-08-22 · origin pib:2159727
  8. Government's Semicon India Programme to develop a complete ecosystem ranging from design to manufacturing · official · published 2026-04-01 · origin pib:2247814

Related desks: SemiconductorsMeitY

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We establish what is documented, what changed, who is responsible, where evidence conflicts and what remains unknown. We do not give investment, legal or policy advice — the decision stays with you or your adviser. Services · Methodology