Design Linked Incentive Scheme (DLI)
Ministry of Electronics and Information Technology (MeitY)
Continues under India Semiconductor Mission 2.0 (Budget 2026-27). As of Jan 2026: 24 chip-design startups supported (they've raised ₹430 crore of VC), 2.25 crore EDA tool-hours provided to 67,000 students and 1,000+ startup engineers; startups have done 16 tape-outs yielding 6 chips (down to 12 nm). Register/apply on the DLI portal.
What changed: Progress figures (Jan 2026); ISM 2.0
Sources (2)
DLI provides incentives and access to advanced design infrastructure for domestic startups and MSMEs.
Objectives
The Design Linked Incentive (DLI) Scheme is a key instrument under the Semicon India Programme to catalyze a strong, self-reliant chip design ecosystem by providing financial incentives and access to advanced design infrastructure for domestic startups and MSMEs.
Who can apply?
- Domestic companies, startups and MSMEs engaged in semiconductor design or semiconductor-linked design.
- Target areas include ICs, chipsets, SoCs, systems, IP cores and semiconductor-linked designs.
- Applicants claiming incentives must retain domestic status, i.e., more than 50% beneficial ownership by resident Indian citizens / Indian companies ultimately owned and controlled by resident Indians, for 3 years after claiming incentives.
What do you get?
- Chip Design Infrastructure Support: Access to EDA tools, IP cores, MPW prototyping and post-silicon validation support.
- Product Design Linked Incentive: Reimbursement of up to 50% of eligible expenditure, capped at ₹15 crore per application.
- Deployment Linked Incentive: Incentive of 6% to 4% of net sales turnover over 5 years, capped at ₹30 crore per application.
How to apply
Visit the official DLI portal and register/login. Submit the online application with required project and applicant details. Track application status online; approvals/certificates are issued electronically