The government has earmarked Rs 15,500 crore for diverse electronics manufacturing initiatives in the fiscal year 2024-25, encompassing programs related to semiconductors and the Production-Linked Incentive (PLI) scheme for mobile and IT hardware. A substantial portion of this allocation, Rs 4,203 crore, is proposed as incentives for assembly, test, and packaging plants. This financial support is expected to benefit projects initiated by industry leaders such as Micron in Gujarat, the anticipated venture by Foxconn and HCL, as well as initiatives by the Tata Group. The proposed outlay extends its coverage to projects focused on establishing compound semiconductor and sensor plants.

Specifically, the allocation for the semiconductor sector includes Rs 1,500 crore for the semiconductor fab or electronic chip plant, Rs 900 crore for the semiconductor laboratory based in Mohali, and Rs 200 crore for the design-linked incentive scheme. The cumulative allocation for various semiconductor projects totals Rs 6,903 crore. This strategic investment aims to bolster the semiconductor ecosystem in India, fostering innovation and technological advancements.

In addition to the semiconductor initiatives, the government is proposing an augmented allocation for the Mobile Production-Linked Incentive (PLI) scheme, raising it to Rs 6,125 crore for the financial year 2024-25 from the previous Rs 4,489 crore in 2023-24. This increase reflects a commitment to incentivize mobile production within the country. Prominent firms like Dixon, Foxconn, Optiemus Electronics, and Lava are actively participating in the PLI schemes, contributing to the growth and self-reliance of the Indian electronics manufacturing sector. The government's continued support through financial incentives reinforces its commitment to enhancing domestic production capabilities and fostering a robust electronics manufacturing ecosystem.