Budget 2025: Can Sitharaman and co help India turn into a semiconductor superpower?
Nirmala Sitharaman along with her team is working for the preparations of Union Budget 2025. Among the key focus areas could be India’s semiconductor industry which is undergoing a transformation currently.
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India has historically been a consumer of semiconductor chips rather than a producer. However, in last few years, the Modi government has been focusing on building an indigenous semiconductor manufacturing ecosystem to reduce dependence on imports, foster innovation, and capture a larger share of the global semiconductor market.
With significant budget allocations, policy interventions, and partnerships, India could position itself to become a major player in the global semiconductor industry.
How much did India’s semicon industry get in previous Budgets
The government’s union budget allocations for the semiconductor industry have seen a notable rise in recent years. The Ministry of Electronics and Information Technology (MeitY) was allocated Rs 21,936.9 crore in the 2024-25 union budget, a 52% increase over the previous year. An important reason for this increase is the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which saw a 355% rise in its capital allocation to Rs 6,903 crore.
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