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HomeGADGETSELECTRONICSBudget 2024: Electronics manufacturing, semicon, research get ₹15,500 crore allocation

Budget 2024: Electronics manufacturing, semicon, research get ₹15,500 crore allocation

The government has set aside ₹15,500 crore for various programmes in the coming fiscal year. This includes a focus on semiconductors and the Production-Linked Incentive (PLI) scheme for mobile and IT hardware.

A significant chunk of ₹4,203 crore has been earmarked for incentives for assembly, test, and packaging plants. This is expected to benefit projects by companies like Micron, Foxconn-HCL joint venture, and Tata Group.

The allocation covers the setup of compound semiconductor and sensor plants. Specifically, ₹1,500 crores is designated for semiconductor fab or electronic chip plants, ₹900 crores for the Mohali-based semiconductor laboratory, and Rs 200 crore for the design-linked incentive scheme.

For mobile PLI, the government proposes to increase the allocation to ₹6,125 crore in 2024-25, up from ₹4,489 crore in the previous year. Companies like Dixon, Foxconn, Optiemus Electronics, and Lava involved in mobile PLI schemes are set to benefit. However, the budget document indicates a more modest ₹75 crore allocation for the IT hardware PLI scheme.

For older electronics hardware manufacturing schemes like modified special incentive package, electronics cluster etc, the government has proposed to allocate ₹750 crore.

“The substantial allotment of ₹15,000 crore for various manufacturing schemes will provide a significant thrust to the industry. The noteworthy increase in the allocation for the Modified Programme for Development of Semiconductors and display manufacturing ecosystem, now standing at ₹6,903 crore, is poised to drive forward the semiconductor and telecom industry, offering a substantial boost,” GX Group CEO Paritosh Prajapati said.

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

(With inputs from PTI)

Also Read: Budget 2024: Finance Minister announces a corpus of ₹1 lakh crore for research and development in tech

 

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