The Reserve Bank of India’s (RBI) annual report highlights India’s potential to become a global semiconductor and electronics manufacturing hub, driven by recent government initiatives. Key highlights include:
- Government Initiatives and Budget Allocation:
- The interim Union Budget 2024-25 allocates ₹6,903 crore for semiconductor and display fabs.
- Investments under the production-linked incentive (PLI) scheme are expected to gain momentum.
- Economic Growth and Employment:
- These investments are anticipated to create new employment opportunities, improve labor incomes, and strengthen domestic demand.
- Real GDP growth for 2024-25 is projected at 7.0%.
- Research and Innovation Boost:
- The passage of ‘The Anusandhan National Research Foundation Bill, 2023’ will establish the Anusandhan National Research Foundation (NRF) to enhance research and innovation in basic science, healthcare, and humanities.
- National Quantum Mission (NQM):
- Approved at a total cost of around ₹6,000 crore from 2023-24 to 2030-31, the NQM aims to scale up scientific and industrial R&D in quantum technology.
- This mission aligns with national priorities like Digital India, Make in India, Skill India, Stand-up India, Start-up India, Self-reliant India, and the Sustainable Development Goals (SDGs).
- Infrastructure and Digital Technologies:
- Government-led investments in infrastructure and the increasing adoption of digital technologies are expected to boost productivity and potential growth in the medium term.
These initiatives are poised to strengthen India’s position in the global semiconductor and electronics manufacturing sectors, fostering significant economic growth and technological advancement.
