Budget 2025: Govt ups allocation for electronics PLIs, semicon, AI by 84%

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The government has enhanced allocation for key technology projects, comprising production-linked incentives for mobile phones, IT hardware, semiconductor scheme and IndiaAI Mission, by about 84 per cent to Rs 18,000 crore for the next fiscal.

The revised allocation for the key electronic sector project was around Rs 9,766 crore in the current financial year, according to the budget documents.

The allocation for IndiaAI Mission has been increased by over 11 times to Rs 2,000 crore. The IndiaAI mission is spearheading development of the country's artificial intelligence ecosystem including providing financial support for compute infrastructure.

The total allocation for Ministry of Electronics and IT has been raised by about 48 per cent to Rs 26,026.25 crore for 2025-26 against Rs 17,566.31 crore under the revised allocation for the current fiscal.

The highest allocation of Rs 8,885 crore has been made for the production-linked incentive scheme for Large Scale Electronics Manufacturing which focuses on the production of mobile phones. The beneficiaries under the scheme include Apple vendors Foxconn, Tata Electronics, Dixon Technologies, Lava International etc.

The allocation for semiconductor projects has been more than doubled to Rs 2,499.96 crore for 2025-26 from Rs 1,200 crore revised allocation for the current fiscal.

The government has received a total investment commitment of Rs 1.52 lakh crore for various semiconductor projects.

The union budget has increased allocation for compound semiconductors, sensors, chip assembly, testing and packaging units etc by 56 per cent to Rs 3,900 crore from Rs 2,500 crore under the revised allocation for the current fiscal.

In line with observation of the Economic Survey 2024-25 of low research in the electronics sector, the budget has almost doubled allocation for design linked incentive scheme to Rs 200 crore from Rs 105.46 crore in the revised allocation for the current fiscal.