India’s MeitY has seen a substantial rise in its budget for the fiscal year 2024-25, with the Union Budget allocating Rs 21,936.90 crore. This represents a 52% rise from the revised estimate of Rs 14,421.25 crore for 2023-24, highlighting the government’s dedication to bolstering the electronics manufacturing and semiconductor ecosystem in the country.
Enhanced Funding for PLI Schemes
An important portion of this rise in budget is allocated to the enlarged production–linked incentive (PLI) plans. These initiatives are made to stimulate semiconductor production and large–scale electronics manufacturing and IT hardware development in India, aiming to greatly improve the nation’s capabilities in these vital sectors.
Focus on Semiconductor Ecosystem
One of the key areas receiving higher funding is the semiconductor ecosystem. The budget for the ‘modified scheme for setting up of compound semiconductors/silicon photonics/sensors fab/discrete semiconductors fab and semiconductor assembly, testing, marking and packaging (ATMP)/outsourced semiconductor assembly and test (OSAT) facilities in India’ has been increased from Rs 1,428.84 crore in 2023–24 to Rs 4,203 crore in 2024–25. This significant increase highlights the government’s focus on developing a robust semiconductor infrastructure in the country.
Similarly, the ‘Modified Scheme for Setting up of Semiconductor Fabs in India’ has seen its budget rise from Rs 12.51 crore in 2023–24 to Rs 1,500 crore in 2024–25. These allocations are aimed at positioning India as a global hub for semiconductor manufacturing, reducing dependency on imports, and fostering innovation and growth in the sector.
Investment in AI Infrastructure
In addition to the focus on semiconductors, the government has allocated Rs 500 crore for the IndiaAI program. This program, with a total budget of Rs 10,738 crore, aims to enhance the country’s artificial intelligence infrastructure. The investment in AI is expected to drive advancements in various sectors, including healthcare, education, agriculture, and smart cities, thereby promoting economic growth and improving the quality of life.
MeitY also oversees several public sector undertakings, including the National Informatics Centre, Centre for Development of Advanced Computing (C-DAC), and the Indian Computer Emergency Response Team (CERT-In). The budget for these entities reflects a mixed trend.
The budget estimate for C-DAC has remained unchanged at Rs 270 crore. However, the Unique Identification Authority of India (UIDAI) has seen a decrease in its budget from Rs 800 crore in 2023-24 to Rs 600 crore in 2024-25. Conversely, the semiconductor laboratory’s budget has risen from Rs 493 crore to Rs 540 crore, indicating a continued focus on enhancing the country’s semiconductor research and development capabilities.
Gradual Increase in MeitY’s Budget
The rise in MeitY’s budget is part of a broader trend of gradually increasing allocations over the years. This consistent growth in funding reflects the government’s ongoing efforts to support and make the electronics and information technology sectors in India. The enhanced budget will enable MeitY to implement key schemes and initiatives more effectively, driving innovation and growth in these critical areas.
The 52% boost in MeitY’s budget for 2024–25 clearly reflects the Indian government’s dedication to enhancing the nation’s electronics manufacturing and semiconductor sector. With significant investments directed towards PLI schemes, semiconductor infrastructure, and AI development, MeitY is strategically positioned to propel major advancements in these areas. The ongoing support for public sector undertakings highlights the government’s comprehensive strategy to cultivate a robust and self-sufficient technological landscape in India. As these initiatives progress, India is set to become a global leader in electronics manufacturing and information technology, driving innovation and economic growth.### MeitY Receives 52% Boost in 2024-25 Budget Outlay at Rs 21,936 Crore
