In a significant move, the Indian government has demonstrated its unwavering commitment to the semiconductor and electronics manufacturing sector by allocating a substantial Rs 6,903 crore in the Interim Budget for 2024-25. This allocation, doubling the previous year’s budget, solidifies the government’s determination to propel India into the forefront of nations excelling in semiconductor technology.
The announcement is a crucial step following the introduction of a Rs 76,000 crore incentive scheme in December 2021, designed to lay the groundwork for India’s ambitious plans in the semiconductor and display manufacturing ecosystems. The allocated funds are expected to play a pivotal role in fostering innovation and growth within the industry.
Ashok Chandak, president of the India Electronics & Semiconductor Association (IESA), praised the government’s continued support for the sector, emphasizing the importance of Design-led Manufacturing with greater value addition.
Hitesh Garg, vice-president and India managing director at NXP Semiconductors, expressed enthusiasm for Budget 2024, highlighting the substantial boost in funding and the 130 per cent rise to Rs 6,903 crore. Garg sees these strategic moves as positioning India as a global semiconductor hub, solidifying its commitment to cutting-edge technological advancements.
The increased budgetary allocation aligns with India’s aspirations to become a prominent player in the global electronics manufacturing landscape. The government’s forward-looking approach to fostering research and development reflects its dedication to shaping India as a hub for semiconductor innovation.
As the focus on artificial intelligence and semiconductors gains momentum, the Indian government’s futureDESIGN DLI Scheme recognizes the critical role of AI in the semiconductor industry. By providing financial and infrastructure support for chip design, the scheme aims to accelerate the development of AI chips in India, where a substantial pool of chip designers resides.
In summary, the significant boost in the budget underscores India’s commitment to technological progress and its ambition to emerge as a leading force in the global semiconductor arena.
