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Semiconductors • Electronics Manufacturing • PLI Scheme • Union Budget 2025

India’s Semiconductor Drive Gathers Momentum Ahead of Union Budget 2025

As Union Budget 2025–26 approaches, the Government of India is doubling down on its mission to transform India into a global semiconductor and electronics manufacturing hub. With initiatives like the Semicon India Programme and the Production-Linked Incentive (PLI) scheme, the focus is firmly on boosting investment, job creation, and self-reliance in high-tech sectors.

🧩 Semiconductor Programme: Building a Future-Ready India

• Launched in December 2021
• Aims to create a sustainable semiconductor and display ecosystem
• Five semiconductor projects approved
• 16 design companies supported under the Design Linked Incentive (DLI) scheme
• Expected to draw investments of ₹1.52 lakh crore
• Estimated job creation: 25,000 direct jobs and 60,000 indirect jobs

📈 Electronics Manufacturing & PLI Impact

• India achieved ₹6.14 lakh crore in electronics production
• Exports have crossed ₹3.12 lakh crore
• 128,000 direct jobs created through the PLI scheme
• Focus on large-scale manufacturing of mobile phones, laptops, IT hardware, and wearables

💰 Fiscal Support & Incentives

• Up to 50% fiscal support for semiconductor and display fab units
• 30% fiscal support for compound semiconductor and ATMP (Assembly, Testing, Marking & Packaging) units
• Design companies receive up to 50% incentives for eligible expenditure under the DLI scheme

🧠 India Semiconductor Mission (ISM)

• ISM will lead long-term strategies and implementation
• To be managed by global experts in semiconductors
• Acts as a nodal agency for India’s semiconductor ambitions
• Drives collaboration with states for high-tech cluster development

🔐 Strategic Significance

• Semiconductors are critical for national security, digital sovereignty, and economic competitiveness
• Strengthening domestic capacity aligns with India’s vision of self-reliance (Aatmanirbharta)
• A robust semiconductor ecosystem positions India in global supply chains, reducing dependence on imports

⚠️ Challenges on the Horizon

• Low value addition in electronics manufacturing
• Heavy import dependence for core components
• No indigenous semiconductor foundry yet
• Requires scale, advanced R&D, and long-term policy stability

🛠️ What India Needs Next

• End-to-end ecosystem: From design to foundry, testing, and packaging
• Encourage public-private partnerships and global tech collaborations
• Improve R&D infrastructure, ease of doing business, and logistics
• Prioritise trusted semiconductor partnerships with like-minded nations

India’s semiconductor journey is no longer a dream—it’s a mission in motion. With strategic investments, policy clarity, and global partnerships, the nation is well on its way to becoming a key player in the global semiconductor value chain.