Government allocates Rs 15,500 cr for electronics manufacturing, semicon, research

For FY25, the government has assigned an amount of Rs 15,500 crore for various electronics manufacturing programmes, including semiconductor mission and mobile and IT hardware PLI scheme. Rs 4,203 crore incentives have been proposed for assembly, test, and packaging plants that can benefit projects like the ones set up by Micron in Gujarat, the proposed plant by Foxconn and HCL joint venture, Tata Group etc.

Also, the allocation covers the setup of compound semiconductor and sensor plants. Rs 1,500 crores has been allocated for semiconductor fab or electronic chip plants, Rs 900 crores for the Mohali-based semiconductor laboratory, and Rs 200 crore for the design-linked incentive scheme.

The government has suggested increasing the allocation for mobile PLI to Rs 6,125 crore in 2024-25 from Rs 4,489 crore in the previous year. Companies like Dixon, Foxconn, Optiemus Electronics, and Lava will benefit from it. However, the budget document indicates a more modest Rs 75 crore allocation for the IT hardware PLI scheme.

For older electronics hardware manufacturing schemes like modified special incentive packages, electronics clusters etc, the government has proposed to allocate Rs 750 crore.

Capital outlay has been increased to Rs 1,148.25 crore, up from Rs 1,000 crore. However, the capital outlay for state-run telecom research firm C-DoT has been reduced to Rs 500 crore from Rs 590 crore.