India Bets Big on Tech: Budget Soars 84% to Fuel AI, Semiconductors, and Mobile Manufacturing

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Budget Soars 84% to Fuel AI

Key Highlights:

  1. Budget Surge: India’s tech sector allocation rockets 84% YoY to ₹18,000 crore for FY25, up from ₹9,766 crore in FY24.
  2. AI Revolution: IndiaAI Mission gets an 11x boost with ₹2,000 crore for supercomputers, AI infrastructure, and startups.
  3. Mobile Manufacturing Push: ₹8,885 crore allocated for PLI schemes to strengthen giants like Foxconn, Tata Electronics, and Lava.
  4. Semiconductor Ambitions: Funding doubled to ₹2,500 crore; ₹1.52 lakh crore in global investments secured to position India as a chip hub.
  5. IT Sector Growth: MeitY’s budget up 48% to ₹26,026 crore, accelerating innovations in IT hardware and digital governance.

New Delhi: In a bold move to cement India’s position as a global tech powerhouse, the central government has allocated ₹18,000 crore for critical technology initiatives in FY 2025-26 a staggering 84% increase from the previous year’s revised budget of ₹9,766 crore. The funding surge targets strategic sectors like AI, semiconductors, mobile manufacturing, and IT infrastructure, underscoring India’s ambition to dominate next-generation technologies.

IndiaAI Mission: Supercharging AI with 11x Funding Jump

The IndiaAI Mission receives the most dramatic boost, with its budget soaring 11x to ₹2,000 crore. This initiative will:

  • Develop AI infrastructure, including high-performance supercomputers.
  • Fund AI startups and research hubs to drive innovation in healthcare, agriculture, and logistics.
  • Establish a national AI dataset platform to enhance data accessibility for developers.

Impact: Experts project this could position India among the top five AI economies by 2030.

Mobile Manufacturing: PLI Schemes Power ‘Make in India’

The Production Linked Incentive (PLI) scheme for mobile manufacturing secures the lion’s share with ₹8,885 crore, a 145% jump from FY24. Key beneficiaries include:

  • Apple’s suppliers: Foxconn and Tata Electronics (manufacturing iPhones in Tamil Nadu).
  • Domestic giants: Dixon Technologies and Lava International (boosting exports).

Goal: India aims to produce 1 billion mobile units annually by 2026, doubling FY24’s output.

Semiconductors: Doubling Down on a Global Hub Dream

Allocation for semiconductor manufacturing doubles to ₹2,499.96 crore amid ₹1.52 lakh crore in global investment pledges. Notable players include:

  • Tata Group: Building a ₹91,000 crore chip fab in Gujarat.
  • Micron: Setting up a ₹22,500 crore assembly plant in Sanand.

Vision: Reduce reliance on imports (currently 90% of India’s chips are imported) and create 50,000 jobs by 2028.

IT Sector: 48% Budget Jump to Drive Innovation

The Ministry of Electronics and IT (MeitY) sees its budget rise 48% to ₹26,026 crore, focusing on:

  • Digital governance: Strengthening platforms like Aadhaar and UPI.
  • Startup ecosystem: Expanding grants for deeptech and cybersecurity ventures.
  • IT hardware: Incentivizing local production of laptops, servers, and components.

Economic Impact & Global Implications

This budget aligns with India’s strategy to become a $1 trillion digital economy by 2030. Analysts highlight:

  • Job creation: Potential for 5 lakh new jobs in semiconductors, electronics, and AI.
  • Export growth: Mobile exports expected to hit $50 billion by FY26 (vs. $15 billion in FY24).
  • Global partnerships: Strengthening ties with the US, Japan, and EU for tech collaboration.

Rajeev Chandrasekhar, MoS Electronics & IT: “This budget is a game-changer. We’re building future-ready infrastructure to lead the techade.”

India’s Techade Unleashed

With record-breaking allocations, Budget 2025-26 accelerates India’s quest for technological self-reliance. From AI supercomputers to cutting-edge chip fabs, the investments signal a transformative leap toward innovation, jobs, and global leadership. As the world watches, India’s tech sector is poised to redefine the future—one silicon chip at a time.

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