- Experts urge a larger allocation in Budget 2025 to boost India’s semiconductor self-reliance and infrastructure.
- Industry leaders seek PLI for IoT, wearables, AI, and tax cuts on critical materials to enhance competitiveness.
- Despite past initiatives, progress is slow; experts stress the need for significant budget support to meet global semiconductor goals.
As India gears up for Union Budget 2025, the semiconductor industry’s expectations soar, but history begs the question: will the government’s promises meet the scale of the challenge?
While the allocation for FY24 stood at ₹6,903 crore, experts are pushing for a more aggressive strategy to achieve self-reliance in a sector crucial to modern economies.
The stakes couldn’t be higher. The global semiconductor market is fiercely competitive, and India’s ambition to establish itself as a key player rests on more than just increased budget allocations.
Despite the ₹76,000-crore India Semiconductor Mission launched in 2021, actual progress has been slow, with domestic fabs still far from operational.
As Krishna Vij, VP at TeamLease Digital, pointed out,
“Over $20 billion in commitments from domestic players isn’t enough without substantial funding to drive innovation and self-reliance.”
Furthermore, the industry’s wishlist—PLI extensions for IoT, wearables, and AI devices, alongside reduced import duties on critical materials—underscores the gap between policy and execution.
The crux is clear: Budget 2025 must signal a decisive shift. While stocks like Tata Elxsi and CG Power may benefit in the short term, India risks falling behind without a clear, well-funded roadmap.
A lukewarm allocation would only reinforce the perception that India’s semiconductor ambitions are more talk than action.
Edited by Harshajit Sarmah
