Budget FY 24-25: ₹4,203 crore for ATMP and ₹1,500 crore allotted for semiconductor fabs.
The Indian budget for the fiscal year 2024-2025 (FY25) has allocated ₹15,500 crore to boost electronics manufacturing capabilities. This includes various programs under the semiconductor mission and the Production Linked Incentive (PLI) schemes for mobile and IT hardware.
Total ₹6,903 crore has been allotted for the semiconductor mission. Major portion of this location, ₹4,203 crore, is dedicated to incentives for assembly, test, and packaging (ATMP) facilities, potentially benefiting significant projects like Micron’s setup in Gujarat, the proposed Foxconn and HCL joint venture, and initiatives by the Tata Group.
To set up semiconductor fab or electronic chip plants in India, ₹1,500 crore is allocated. It aims to support the establishment of compound semiconductor and sensor plants, alongside projects for semiconductor fabrication (fab) facilities. The Mohali-based Semiconductor Laboratory (SCL) is set to receive ₹900 crore, with the Design Linked Incentive Scheme allocated ₹200 crore, totaling ₹6,903 crore for semiconductor-related projects.
The fund allocation for the mobile production PLI scheme was increased to ₹6,125 crore in FY25, from ₹4,489 crore in FY24, benefiting companies like Dixon, Foxconn, Optiemus Electronics, and Lava that are engaged in mobile PLI schemes.
Although the substantial incentives promised over five years are ₹17,000 crore for the IT hardware PLI, the proposed allocation for FY25 is only ₹75 crore. The government has also designated ₹750 crore for older electronics hardware manufacturing schemes, including the modified special incentive package and electronics clusters.
The allocation for state-run telecom research and development firm C-DoT has been reduced to ₹500 crore from ₹590 crore in the previous fiscal year. No allocation could be noticed for the telecom hardware PLI scheme, according to the budget document. The capital outlay for FY25 has been increased to ₹1,148.25 crore from ₹1,000 crore in FY24.
