New Delhi, July 2 -- On Tuesday, the Union Cabinet approved a $12 billion scheme to support research, development and innovation (RDI) in India's technology and electronics sectors. The move came after decades of industry demands seeking promotion of designing electronics in India-and not just assembling consumer devices.Mint looks at why and how this scheme can affect the contours of India's electronics industry.

With a net outlay of $12 billion ( Rs.1 trillion) spread over multiple years, the scheme to finance the R&D budgets of companies will operate under the Anusandhan National Research Foundation (ANRF) of the Department of Science and Technology. Through a 'special purpose fund' within ANRF, the Centre will appoint an investment c...