The Union Budget 2025 has significantly enhanced funding for technology initiatives, including production-linked incentives (PLIs), semiconductor development, and the IndiaAI Mission. The allocation has risen by 84% to ₹18,000 crore for FY 2025-26, compared to ₹9,766 crore in the revised budget for the current fiscal year.
This boost reflects the government’s focus on strengthening India’s position as a global technology hub by investing in electronics manufacturing, AI infrastructure, and semiconductor projects.
Increased Budget for IndiaAI Mission
The allocation for the IndiaAI Mission has surged by over 11 times, reaching ₹2,000 crore. This mission aims to accelerate the development of India’s artificial intelligence ecosystem by providing financial support for compute infrastructure and other essential resources.
Expansion in Electronics Manufacturing
The Ministry of Electronics and IT has seen its budget rise by 48% to ₹26,026 crore for FY 2025-26. The highest share—₹8,885 crore—is allocated to the PLI scheme for Large Scale Electronics Manufacturing, which primarily targets mobile phone production. Beneficiaries include major players such as Foxconn, Tata Electronics, Dixon Technologies, and Lava International.
Boost for Semiconductor Projects
Funding for semiconductor development has more than doubled to ₹2,499.96 crore, up from ₹1,200 crore in the current fiscal year. The government has secured investment commitments totaling ₹1.52 lakh crore across various semiconductor projects.
Additionally, the allocation for compound semiconductors, sensors, and chip assembly, testing, and packaging units has increased by 56% to ₹3,900 crore.
Also read: Government Plans New PLI Scheme for Telecom Components
Support for Design Linked Incentive Scheme
In response to the Economic Survey 2024-25, which highlighted the need for greater research in the electronics sector, the budget has doubled funding for the Design Linked Incentive (DLI) scheme. The allocation has increased to ₹200 crore, compared to ₹105.46 crore in the revised allocation for FY 2024-25.
Strengthening India’s Tech Ecosystem
These increased investments are expected to enhance India’s digital transformation, promote self-reliance in electronics manufacturing, and support emerging technology sectors. By improving access to resources and fostering innovation, the government aims to position India as a leading player in global technology development and sustainability-focused manufacturing.
