Bharat To Get A Major Boost: Government Doubles Down On Electronics Schemes, Allocates whopping Rs 18,000 Cr
In a significant move, Finance Minister Nirmala Sitharaman has unveiled the Union Budget 2025 with major emphasis on revamping key electronic schemes and doubling down on production-linked incentives for mobile phones and semiconductor projects. This budget is poised to bring substantial benefits for the nation's electronics sector.
Under this revised allocation, the government has allocated Rs 8,885 crore towards supporting Large Scale Electronics Manufacturing (LSEM), primarily focused on mobile phone production. Notably, Apple vendors such as Foxconn, Tata Electronics, and Dixon Technologies are also among the beneficiaries of the scheme along with companies like Lava International and Samsung.
However, the most notable rise comes for the semiconductor sector, which has seen its allocation more than double to Rs 2,499.96 crore in FY2025-26 compared to Rs 1,200 crore allocated last fiscal year. Furthermore, the government has reaffirmed their commitment towards securing a total investment commitment of Rs 1.52 lakh crore towards various semiconductor projects.
Another significant leap has been seen in the allocation for compound semiconductors, sensors, and chip manufacturing units. The revised allocation now stands at Rs 3,900 crore, marking a staggering increase of 56 per cent from the previously allocated amount of Rs 2,500 crore for last fiscal year.
This upward shift holds notable implications for India's electronics industry and could catapult it to be more competitive globally. With such measures implemented in place, Indian companies are set to get an exclusive boost that would drive economic growth and create a thriving ecosystem for technology development in the country.
"This major push will have far-reaching effects, both positively impacting the manufacturing sector and generating substantial revenue in local economies across India," stated economists closely monitoring this movement.