Design Linked Incentive Scheme: Eligibility Criteria and Key Components

Explore India's Design Linked Incentive Scheme. Learn how it boosts domestic semiconductor design and manufacturing by providing financial incentives to startups and companies.

Table of Contents

Context: 23 chip design projects approved for financial assistance under the Design Linked Incentive (DLI) Scheme.

About the Design Linked Incentive Scheme

The Design Linked Incentive (DLI) Scheme is a major initiative of the Government of India, initiated through the Ministry of Electronics and Information Technology (MeitY) under the overall ₹76,000 crore Semicon India Programme. The overarching purpose of this scheme is to create a strong and sustainable ecosystem for semiconductor and electronics design in the nation.

Aim: To promote domestic innovation and self-reliance in semiconductor design by offering financial incentives and infrastructure support at various stages of design and deployment.
Objective: To support and nurture at least 20 Indian companies involved in semiconductor design and help them achieve a turnover of over ₹1,500 crore within five years.
- To enable significant indigenisation of semiconductor content, reduce import dependence and enhance value addition in the electronics sector.
Target Areas: Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores, Semiconductor-linked designs
Nodal Agency: The Centre for Development of Advanced Computing (C-DAC), under the Ministry of Electronics and Information Technology (MeitY), is the implementing body.

Eligibility Criteria

Open to Indian startups, MSMEs, and domestic companies engaged in semiconductor design.

Applicants must maintain domestic ownership status for a minimum of three years.
To claim annual incentives, companies must meet specified threshold sales criteria.
If an applicant fails to meet the net sales threshold in a given year, they won’t be eligible for the incentive for that year.
However, they can requalify for subsequent years during the scheme’s tenure if the threshold is met.

Domestic Ownership

More than 50% capital should be owned by resident Indian citizens and Indian companies ultimately controlled by them.

Key Components

Chip Design Infrastructure Support: Establishment of the India Chip Centre by C-DAC to provide access to EDA tools and design infrastructure.
Product Design Linked Incentive: Financial support tied to milestones in product development.
Deployment Linked Incentive: Incentive based on the successful deployment and commercialisation of designed semiconductor products.

Recent Developments

As of mid-2025, the DLI program has approved monetary funding for dozens of chip-design initiatives, a significant milestone for India’s semiconductor ecosystem. A number of these projects are already moving through different stages of development, with some companies having already received venture capital funding and others having completed prototype fabrication. These initial achievements underscore the increased strength of India’s chip design on both commercial and academic fronts, working to decrease import reliance and develop a self-sufficient, technologically superior country.