India's MeitY Budget Allocation Soars 52% to Rs 21,936 Crore in 2024-25

Budget 2024: Allocation for MeitY increased by 52% to Rs 21,936 crore

The budget estimate of 2024-25 for the Ministry of Electronics and Information Technology (MeitY), saw a 52% increase in its allocation to Rs 21,936.9 crore, compared to the revised estimate of 2023-24, at Rs 14,421.25 crore. This increase can be attributed largely to MeitY's capital allocation towards the - Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which saw a whopping 355% increase to Rs 6,903 crore, compared to revised estimates of 2023-24, at Rs 1,503.36 crore. Under this item, the lion share of Rs 4,203 crore has been allocated to the sub-item called, "Modified Scheme for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities in India". The Incentive schemes for both semiconductors and large-scale electronics manufacturing and IT hardware is providing sops to large companies like Micron, Tata Electronics and others to set up facilities in India. "The increased funding will foster innovation, support the establishment of advanced manufacturing facilities, and reduce reliance on imports. It will also attract global investments, create high-tech jobs, and position India as a key player in the global semiconductor supply chain, ultimately enhancing the country's technological self-reliance and competitiveness", said Munira Loliwala, VP- Strategy and Growth, TeamLease Digital. The government has also allocated Rs 551.75 crore for IndiaAI mission to boost the country's Artificial Intelligence infrastructure. The previous NDA cabinet had in March this year approved an allocation of over Rs 10,300 crore for the IndiaAI Mission. The financial infusion, slated over the next five years, envisioned to catalyse various components of the IndiaAI Mission, including pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI. A cornerstone of this effort is the IndiaAI compute capacity, envisioned to erect a cutting-edge, scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs) through strategic public-private collaborations. For the second year in a row, no funds have been set aside for the rural digital literacy scheme PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) and for PLI schemes for large scale Electronics or IT Hardware. No funds have also been allotted for the promotion of digital payments this year. Last year, Rs 1,500 crore were allocated for the same, and the revised estimate for the year 2023-24 was Rs 584 crore.

Budget 2024: Allocation for MeitY increased by 52% to Rs 21,936 crore - ET Telecom

Policy 2 min read Budget 2024: Allocation for MeitY increased by 52% to Rs 21,936 crore The Incentive schemes for both semiconductors and large-scale electronics manufacturing and IT hardware is providing sops to large companies like Micron, Tata Electronics and others to set up facilities in India. The budget estimate of 2024-25 for the Ministry of Electronics and Information Technology (MeitY), saw a 52% increase in its allocation to Rs 21,936.9 crore, compared to the revised estimate of 2023-24, at Rs 14,421.25 crore. This increase can be attributed largely to MeitY's capital allocation towards the - Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which saw a whopping 355% increase to Rs 6,903 crore, compared to revised estimates of 2023-24, at Rs 1,503.36 crore. Under this item, the lion share of Rs 4,203 crore has been allocated to the sub-item called, "Modified Scheme for setting up of Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities in India". The Incentive schemes for both semiconductors and large-scale electronics manufacturing and IT hardware is providing sops to large companies like Micron, Tata Electronics and others to set up facilities in India. "The increased funding will foster innovation, support the establishment of advanced manufacturing facilities, and reduce reliance on imports. It will also attract global investments, create high-tech jobs, and position India as a key player in the global semiconductor supply chain, ultimately enhancing the country's technological self-reliance and competitiveness", said Munira Loliwala, VP- Strategy and Growth, TeamLease Digital. The government has also allocated Rs 551.75 crore for IndiaAI mission to boost the country's Artificial Intelligence infrastructure. The previous NDA cabinet had in March this year approved an allocation of over Rs 10,300 crore for the IndiaAI Mission. The financial infusion, slated over the next five years, envisioned to catalyse various components of the IndiaAI Mission, including pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI. A cornerstone of this effort is the IndiaAI compute capacity, envisioned to erect a cutting-edge, scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs) through strategic public-private collaborations. For the second year in a row, no funds have been set aside for the rural digital literacy scheme PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) and for PLI schemes for large scale Electronics or IT Hardware. No funds have also been allotted for the promotion of digital payments this year. Last year, Rs 1,500 crore were allocated for the same, and the revised estimate for the year 2023-24 was Rs 584 crore.

Budget 2024: MeitY's budget outlay jumps 52% to Rs 21,936 crore for FY25

MeitY runs multiple incentive schemes and programmes in areas such as semiconductor manufacturing and design, electronics manufacturing, and the India AI Mission, among others. Among different departments of the ministry, the modified scheme for setting up compound semiconductors, silicon photonics, sensors fab, discrete semiconductors fab, and semiconductor assembly, testing, marking and packaging (ATMP)/outsourced semiconductor assembly and test (OSAT) facilities in India has the highest allocation at Rs 4,203 crore, up from Rs 1,424 crore in the revised estimates of FY24.