The Union Budget 2024 has brought a fresh wave of optimism to India’s manufacturing sector, with a series of strategic initiatives designed to accelerate growth and strengthen India’s position as a global manufacturing hub. Among the most significant proposals is the allocation of INR 2,403 crores (USD 315 million) for the development of electronics and IT hardware manufacturing. This initiative is expected to enhance India’s capabilities in manufacturing high-end electronics and contribute to the government’s goal of reducing dependency on imports.
The budget also highlights a major push for the semiconductor manufacturing sector, with a Production-Linked Incentive (PLI) scheme worth INR 760 billion (USD 9.71 billion). This initiative aims to position India as a key player in the global semiconductor supply chain, an area that has become a focal point in the ongoing global tech race. The PLI scheme will offer financial incentives to both domestic and international semiconductor manufacturers, encouraging them to set up state-of-the-art manufacturing plants in India.
India’s semiconductor manufacturing potential has garnered significant attention in recent years, with global tech giants like Intel, TSMC, and Micron exploring manufacturing opportunities in the country. This move is expected to bolster India’s position as a crucial player in the global electronics and IT hardware market.
Electronics & IT hardware manufacturing have long been a target for India’s industrial policy, with the government seeking to shift from an import-driven model to one focused on indigenous production. The allocation of funds under the Union Budget is seen as a significant step in making this vision a reality.
These budgetary measures are not only expected to attract foreign direct investment (FDI) but also promote innovation and the creation of high-tech manufacturing jobs, which will contribute to the overall growth of India’s manufacturing industry.