The Union Budget for 2025 has seen a significant increase in allocations for key technology sectors, particularly in electronics, semiconductors, and artificial intelligence (AI). Here are the key highlights:

The government has raised the budget for production-linked incentives (PLIs), semiconductor projects, and the IndiaAI Mission by 84%, bringing the total to ₹18,000 crore for the fiscal year 2025-26. This is a substantial increase from the ₹9,766 crore allocated in the previous fiscal year.

Semiconductor Projects

The allocation for semiconductor initiatives has more than doubled to approximately ₹2,499.96 crore, up from ₹1,200 crore in the revised budget for the current fiscal year. This increase supports various semiconductor projects and reflects a total investment commitment of ₹1.52 lakh crore from the government.

IndiaAI Mission Funding

The funding for the IndiaAI Mission has surged over 11 times, now set at ₹2,000 crore compared to just ₹173 crore previously. This mission aims to develop India's AI ecosystem and includes provisions for enhancing compute infrastructure.

Ministry of Electronics And IT (MeitY)

The overall budget for MeitY has increased by about 48%, totalling ₹26,026.25 crore for 2025-26, which is a rise from ₹17,566.31 crore in the prior year. This allocation will support various technology projects including mobile phone production and IT hardware.

Production-Linked Incentives: The largest share of the budget—about ₹8,885 crore—is allocated to the PLI scheme for large-scale electronics manufacturing, particularly focusing on mobile phone production. Major beneficiaries include companies like Foxconn and Tata Electronics.

Additional Allocations: The budget also includes a 56% increase in funding for compound semiconductors, sensors, and chip assembly projects, raising it to ₹3,900 crore from ₹2,500 crore in the previous fiscal year.

This comprehensive boost in funding reflects the government's commitment to advancing India's technological capabilities and fostering growth in critical sectors such as electronics and AI.

Agencies