The Ministry of Electronics & Information Technology (Meity) has emerged as the biggest beneficiary of the Union Budget 2024-25, securing a hefty 62% of the total ₹21,085 crore allocated for manufacturing and make in India initiatives.
The lion’s share will be channelled into two flagship schemes: the expanded Production Linked Incentive (PLI) scheme, now covering 16 sectors including toys, footwear, and leather, and the revamped program for semiconductor and display development.
Meity’s allocation for these schemes has more than doubled compared to the previous fiscal, underscoring the government’s commitment to boosting electronics manufacturing and semiconductor production within India.
While the automotive and pharmaceutical sectors have also received substantial PLI allocations, the semiconductor industry has taken centre stage. Mega projects by Tata Group and Micron Technology are on track, with corresponding increases in budgetary support.
However, challenges persist. The PLI schemes for textiles and IT hardware have faced hurdles & require further attention.
Overall, the budget reflects a concerted effort to propel India as a global manufacturing hub, with a particular emphasis on electronics and semiconductors.
Key highlights:
- Meity receives ₹13,103 crore for PLI and semiconductor schemes.
- Automotive PLI allocation jumps sevenfold to ₹3,500 crore.
- The semiconductor sector gets a major boost with increased funding.
- PLI schemes for textiles and IT hardware face implementation challenges.
The government’s strategy is to attract investments, create jobs, and reduce India’s reliance on imports in these crucial sectors.
