With the idea of “Viksit Bharat” in the making, the Union Budget 24-25 has brought a sense of motive and accomplishment to the social and economic fabric of the country. The compelling vision towards upskilling, research and development, employment, and women-centric opportunities seems to be a just and progressive way forward.
Not to mention, the govt. has stepped up substantially to elevate the electronics and technology industry. The intention is crystal clear and the focus is sharp. The allocation of Rs 21,936 crore to the Ministry of Electronics and Information Technology (MeitY), marks a significant 52% increase from the revised estimates of FY24, which were Rs 14,421 crore. This boost supports various incentive schemes and programs under MeitY, including semiconductor manufacturing, electronics production, and the India AI Mission.
Speaking of the ministry’s departments, the modified scheme for establishing compound semiconductors, silicon photonics, sensor fabs, discrete semiconductor fabs, and facilities for semiconductor assembly, testing, marking, and packaging (ATMP) and outsourced semiconductor assembly and testing (OSAT) received the highest allocation of Rs 4,203 crore, up from Rs 1,424 crore in FY24. Additionally, the scheme for setting up semiconductor fabs in India has been allocated Rs 1,500 crore for FY25, a big shout-out.
The production-linked incentive (PLI) scheme for large-scale electronics manufacturing also increased, with its outlay rising from Rs 4,489 crore in the revised estimates to Rs 6,125 crore for FY25. For the India AI Mission, the government has allocated Rs 511 crore for FY25.
Furthermore, the National Informatics Centre (NIC), responsible for e-governance and digital infrastructure has received an increased outlay of Rs 1,748 crore, up from Rs 1,552 crore in the previous fiscal year’s revised estimates. The substantial rise in MeitY’s budget, reaching Rs 21,936.9 crore for 2024-25, compared to Rs 14,421.25 crore for 2023-24, is largely due to the capital allocation towards the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which saw a 355% increase to Rs 6,903 crore from Rs 1,503.36 crore in FY24.
Incentive schemes for semiconductors and large-scale electronics manufacturing, as well as IT hardware, are providing significant support to large companies like Micron and Tata Electronics to establish facilities in India. Additionally, Rs 551.75 crore has been allocated for the “India AI Mission” to enhance the country’s AI infrastructure. The previous NDA cabinet had approved over Rs 10,300 crore for the India AI Mission in March, aimed at catalyzing various components, including IndiaAI Compute Capacity, IndiaAI Innovation Centre, IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.
The other aspects of the budget concentrating on the Prime Minister’s “Vocal for Local” vision including “PM Surya Ghar Muft Bijli Yojana” among others is both timely and commendable. Overall, the budget is sure to empower the Indian spirit in action and open new growth avenues for indigenous players. I am excited to see how things will pan out for us as a nation in the next decade.
