New Delhi, Sept. 10 -- India's government is ready to embark on the second phase of its National Semiconductor Mission (NSM) with a potential outlay of $20 billion, as reported by Mint. While it aims to catalyse the setting up of ancillary units for our fledgling chip-making industry, policy incentives need to be designed prudently to deliver outcomes that balance two key challenges.

The first is supply security for these little chips that power modern machines, from household gadgets to cars. The second is the costs that will be borne-not just by consumers, but also by taxpayers. Given the envisaged scale of fresh state support, in the order of Rs.1.76 trillion, we should be reasonably confident of what we gain.

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