New Delhi, Dec 15 (IANS): Key industry players on Wednesday hailed the government's decision to set up the India Semiconductor Mission (ISM) and approved Rs 76,000 crore ($10 billion) for the development of semiconductors and display manufacturing ecosystem in the country.

India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said this is a profound decision and the industry congratulates Prime Minister Narendra Modi and the Ministry of Electronics and Information Technology (MeitY).

"The policy and budget outlay deeply recognise that while India should assemble everything possible in the globe and export to the entire world. Building blocks of the electronic ecosystem i.e. Cells (PLI for advanced chemistry cell or ACC has already been launched), display and the semiconductor ecosystem are critical for long-term sustenance," he said in a statement.

"We will surely not lose our sight on the $300 billion output target by 2025-26, which will be the engine of the growth to support non only these three building blocks but also unleash multiple investments in the electronic supply chain," Mohindroo added.

The Rs 76,000 crore scheme will be spread across 6 years.

India Electronics & Semiconductor Association (IESA) Advisor Satya Gupta said that the focus on silicon logic fab, display fab, compound semiconductors fab, packaging, semiconductor-products-design and research will help in creating a vibrant and sustainable ecosystem in India, leveraging the already existing semiconductor design capabilities.

"This is the first time the government is providing significant incentives for Semiconductor product Design called Design Linked Incentives (DLI) giving incentives for product development and product deployment to create Indian chips level products. We are looking forward to an effective and timely implementation of the policies," Gupta said.

As part of the scheme, incentives worth Rs 2.3 lakh crore will be provided to position India as a global hub.