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Record Budget Allocation To Fuel Govt’s Ambition To Develop India Global Chip Manufacturing Hub

Updated: Feb 03, 2024 04:14:40pm

Record Budget Allocation To Fuel Govt’s Ambition To Develop India Global Chip Manufacturing Hub

New Delhi, Feb 3 (KNN) The Indian government is strategically positioning itself as a global leader in chip and electronics manufacturing through a significant expansion initiative.

In the interim budget for FY25, a remarkable 71.4 per cent surge in allocation for both sectors was unveiled, totalling Rs 13,104.50 crore.

Furthermore, cyber security projects witnessed a substantial boost, with allocation rising to Rs 759 crore from Rs 400 crore in the previous budget.

Additionally, a substantial increase of 133 per cent in allocation for compound and chip assembly was earmarked, reaching Rs 4,203 crore.

Under the Ministry of Electronics and Information Technology (MeitY), the overall allocation for central sector schemes and projects, including the flagship Digital India initiatives, saw a notable surge of nearly 40 per cent to Rs 17,319.51 crore.

Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, highlighted the clarity in policy and growing trust in India, indicating a strong interest from companies to establish mega-manufacturing clusters in the country, reported ET.

He expressed confidence in witnessing more announcements in this regard soon.

The heightened budget allocation suggests that the government may be considering various applications for incentives in chip and electronics manufacturing throughout the fiscal year.

Several prominent companies have already pledged investments in India’s emerging semiconductor assembly and testing sector, driven by the government's concerted efforts to foster a robust chip manufacturing ecosystem domestically.

Union Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, emphasised the buoyancy of the economy, attributing future expansion to technological advancements.

He underscored the interim budget's message of providing necessary funding for startups, innovation, and research, signalling a robust support system for these sectors.

(KNN Bureau)


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