Concerns On Semiconductors, AI, And Cybersecurity Push MeitY’s Budget by 48 pc

ENA Sectors 2025-02-03 14:42:19 New Delhi, Feb 3 (KNN) The Ministry of Electronics and Technology (MeitY) has received a substantial budget increase of 48.16 per cent for fiscal year 2026, with the allocation rising to Rs 26,026.25 crore from the previous year's revised estimate of Rs 17,566.31 crore. The enhanced budget primarily targets advancements in electronics manufacturing and semiconductor development. In her budget speech, Finance Minister Nirmala Sitharaman announced several customs duty modifications to boost domestic electronics manufacturing. The minister increased the basic customs duty on Interactive Flat Panel Displays to 20 per cent while eliminating duties on various mobile phone components and reducing them on carrier-grade ethernet switches. A new presumptive taxation regime was also introduced for non-resident service providers supporting electronics manufacturing facilities. The Production Linked Incentive (PLI) schemes received a significant boost, with allocations increasing by 55.8 per cent to Rs 9,000 crore. The majority of this funding is directed toward large-scale electronics manufacturing, which saw its allocation rise to Rs 8,885 crore. The PLI scheme for IT hardware manufacturing experienced a notable increase, with its budget nearly quadrupling to Rs 115 crore. The semiconductor sector emerged as a key focus area, with its allocation increasing by 83.4 per cent to Rs 7,000 crore. This includes more than doubled funding for semiconductor fabrication units at Rs 2,499.96 crore and increased support for assembly, testing, marking, and packaging facilities. The government has also significantly increased funding for the modernisation of the Semiconductor Laboratory in Mohali to Rs 400 crore. The IndiaAI Mission received a dramatic eleven-fold increase in allocation to Rs 2,000 crore, with 44 per cent of its total approved budget of Rs 10,371.92 crore designated for expanding computing capacity over five years. Cybersecurity initiatives also saw substantial support, with project funding increasing by 83.2 per cent to Rs 590 crore, while the Computer Emergency Response Team (CERT-In) received a modest increase to Rs 255 crore. The Data Protection Board of India's budget was increased to Rs 5 crore, with allocations divided between capital and revenue expenditure. This increase supports the implementation of the Digital Personal Data Protection Act, 2023, with draft rules currently under consultation and expected to be notified by mid-2024. The government has indicated a 24-month compliance window for both public and private sectors following the rules' notification. (KNN Bureau) 40918 https://knnindia.co.in/news/newsdetails/sectors/concerns-on-semiconductors-ai-and-cybersecurity-push-meitys-budget-by-48-pc 2025-02-03 14:42:19 knnindia.co.in Concerns On Semiconductors, AI, And Cybersecurity Push MeitY’s Budget by 48 pc