As India gears up for the Budget 2025, the country’s semiconductor industry stands at a crucial juncture. This budget provides a significant opportunity to reinforce India’s position as a global technology leader while fostering a robust domestic semiconductor ecosystem. Given its critical role in everything from consumer electronics to national security, the semiconductor sector requires well-strategised investments and policy support to unlock its full potential.

Building on the Foundation of Budget 2024

The groundwork for India’s semiconductor ambitions was laid in Budget 2024, with the announcement of the Rs 76,000 crore (approximately $9.1 billion) Production Linked Incentive (PLI) scheme. This initiative was designed to attract global semiconductor manufacturers and boost domestic production. However, to turn these commitments into tangible results, the government must ensure smooth implementation and introduce additional incentives where necessary. Conducting a mid-term review of the PLI scheme’s effectiveness, identifying bottlenecks, and simplifying the application process would demonstrate a proactive approach to industry development.

The Road Ahead: Expectations from Budget 2025

Budget 2025 has the potential to be a transformative milestone for India's semiconductor industry. A well-defined strategy focusing on ecosystem development, talent cultivation, manufacturing incentives, design promotion, and supply chain resilience will be crucial. By addressing these areas, the government can foster a thriving domestic semiconductor industry that not only strengthens India’s economic growth but also enhances its technological self-reliance. With strategic planning and decisive action, Budget 2025 could pave the way for India’s emergence as a global semiconductor powerhouse, driving innovation, investment, and self-sufficiency in the years to come.