Observing that the time was ripe for India to become a hub of semi-conductor business, the government on Friday informed Lok Sabha that several schemes have been announced to encourage domestic production of hardware and NRI investment in nanotechnology.

The Nanotechnology Mission has been launched with an expenditure of Rs 1,000 crore (Rs 10 billion) and Rs 200 crore (Rs 2 billion) would be added every year. Several institutions, including two IITs, have been identified in various cities such as Kolkata, Bangalore, Kanpur and Kochi, for the purpose, Science and Technology Minister Kapil Sibal said during Question Hour.

India's share in world production of semi-conductor chips is estimated to be less than 0.1 per cent, Sibal noted. "We need to develop microprocessing industry in India through joint ventures and schemes to incentivise NRI investment for research and development or setting up of the industry in the country, including allowing 100 per cent FDI," he said, adding that the time was ripe for India to become a hub of semi-conductor business.