Introduction
The Ministry of Electronics and Information Technology (MeitY) has received a significant budgetary boost for the fiscal year 2024-25. The Union Budget has allocated Rs 21,936.90 crore to MeitY, reflecting a 52% increase from the previous year’s revised estimate of Rs 14,421.25 crore.
This substantial rise underscores the government’s commitment to advancing India’s electronics manufacturing and semiconductor ecosystem.
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Budget Allocation Growth Over the Years
The budget allocation for MeitY has seen a steady increase over the years, highlighting the growing importance of the electronics and information technology sectors in India’s economic strategy.
Here is a brief overview of the budget allocations for MeitY over the past few years:
- 2021-22: Rs 9,720 crore
- 2022-23: Rs 12,721 crore
- 2023-24 (Revised Estimate): Rs 14,421.25 crore
- 2024-25: Rs 21,936.90 crore
This consistent increase in funding demonstrates the government’s strategic focus on enhancing India’s capabilities in electronics manufacturing, semiconductor production, and information technology.
Expanding Production-Linked Incentive Schemes
A considerable portion of the increased budget will be directed toward expanding production-linked incentive (PLI) schemes.
These schemes aim to boost both semiconductor and large-scale electronics manufacturing, as well as IT hardware. The expanded PLI schemes are set to boost growth in the electronics sector, positioning India as a global player.
The budget for the ‘modified scheme for setting up semiconductor facilities’ has significantly increased.
The allocation jumped from Rs 1,428.84 crore in 2023-24 to Rs 4,203 crore for 2024-25.
This increase is aimed at accelerating the development of a robust semiconductor ecosystem in India.
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Boosting Semiconductor Manufacturing
The budget for the ‘Modified Scheme for Setting up Semiconductor Fabs in India’ has seen a major increase.
The allocation rose from Rs 12.51 crore in 2023-24 to Rs 1,500 crore for 2024-25. This increase highlights the government’s focus on establishing India as a global hub for semiconductor manufacturing.
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Support for AI and Emerging Technologies
The Union Budget has also earmarked Rs 500 crore for the IndiaAI program, which has a total outlay of Rs 10,738 crore.
This program aims to enhance the country’s artificial intelligence infrastructure, fostering innovation and development in AI technologies.
The increased budget allocation will support the growth of AI applications across various sectors, contributing to India’s position as a leader in AI research and development.
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Funding for Key Public Sector Undertakings
MeitY is also responsible for several key 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).
- Centre for Development of Advanced Computing (C-DAC): Allocation remains unchanged at Rs 270 crore.
- Unique Identification Authority of India (UIDAI): Reduced from Rs 800 crore in the revised estimate for FY 2023-24 to Rs 600 crore.
- Semiconductor Laboratory: Increased from Rs 493 crore to Rs 540 crore.
The budget estimate for C-DAC has remained unchanged at Rs 270 crore. The allocation for the Unique Identification Authority of India (UIDAI) has dropped from Rs 800 crore in the revised estimate of FY 2023-24 to Rs 600 crore.
Meanwhile, the budget for the Semiconductor Laboratory has risen from Rs 493 crore to Rs 540 crore.
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Significance of the Budget Increase
Strengthened Global Competitiveness:
By investing in technology and infrastructure, the increased budget aims to enhance India’s competitiveness on the global stage, attracting international investments and partnerships in the tech industry.
Enhanced Support for Electronics and Semiconductor Industries:
The 52% budget increase boosts funding for Production-Linked Incentive (PLI) schemes and semiconductor manufacturing, strengthening India’s position in the global electronics and semiconductor markets.
Accelerated Technological Development:
Increased funding for the ‘Modified Scheme for Setting up Semiconductor Fabs’ and related initiatives will drive advancements in semiconductor technology, positioning India as a leader in high-tech manufacturing.
Promotion of Innovation and R&D:
The expanded budget supports research and development activities, fostering innovation in AI, electronics, and semiconductor sectors, and encouraging the growth of cutting-edge technologies.
Job Creation and Economic Growth:
The budget boost is expected to create new job opportunities, particularly in manufacturing and tech sectors, contributing to overall economic growth and development.
The expanded budget will also help develop a skilled workforce, support research and development, and encourage investment in advanced technologies. These measures are expected to drive economic growth, create jobs, and position India as a global leader in technology and electronics.
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Conclusion
The 52% increase in MeitY’s budget for FY 2024-25 is a major boost for India’s role in global electronics and semiconductor markets.
Expanded PLI schemes and increased funding for semiconductor manufacturing signal a strong commitment to growth and innovation.
Support for AI and emerging technologies further strengthens India’s technological capabilities. This budget reflects India’s dedication to advancing its position in the global economy.
