The Indian government is proposing changes to its Design-Linked Incentive (DLI) scheme for semiconductors, moving from a reimbursement model to a joint funding mechanism for DLI 2.0. Under the new proposal, the government would match investor contributions pari-passu. The industry, however, advocates for upfront government funding without mandatory matching private capital, regardless of company size. Officials question the commercial viability of companies unable to secure private investment, while the industry seeks more flexible support.