Rs 44,000 Crore Boost for India-Made Global Brands in Electronics and Semiconductors

The Ministry of Electronics and Information Technology (MeitY) has established a task force aimed at transforming India into a leading nation for electronic and semiconductor products. This initiative is part of a broader strategy to bolster India’s position in the global technology market. The task force is nearing the completion of its report, which is expected to recommend a substantial allocation of Rs 44,000 crore between 2024 and 2030. This funding is intended to support domestic companies in developing innovative products and establishing global brands.

Historical Context

India’s journey in the electronics and semiconductor industry has been evolving over the decades. Initially, the country focused on software services, becoming a global hub for IT outsourcing. However, recognizing the importance of hardware and semiconductor manufacturing, the Indian government has been making concerted efforts to build a robust ecosystem in this sector. The “Make in India” initiative, launched in 2014, marked a significant shift towards encouraging domestic manufacturing and reducing dependency on imports. This new task force’s recommendations are a continuation of these efforts, aiming to position India as a key player in the global electronics and semiconductor markets.

Key Recommendations

The task force’s report is expected to propose the following allocations:

• Rs 15,000 crore for electronic products (systems): This fund will be used to support the development and manufacturing of electronic systems, enhancing India’s capability to produce high-quality electronic products.

• Rs 11,000 crore for semiconductor products: This allocation aims to boost the semiconductor manufacturing sector, which is crucial for the development of various electronic devices and systems.

• Rs 18,000 crore for other incentives: This includes funding for talent development, common infrastructure, and logistics, which are essential for creating a supportive environment for the electronics and semiconductor industries.

Summary

• Objective: Transform India into a leading nation for electronic and semiconductor products.
• Funding: Rs 44,000 crore allocated between 2024 and 2030.
• Key Allocations:
  • Rs 15,000 crore for electronic products (systems).
  • Rs 11,000 crore for semiconductor products.
  • Rs 18,000 crore for talent development, infrastructure, and logistics.
• Historical Context: Part of India’s ongoing efforts to strengthen its manufacturing sector and reduce import dependency, building on initiatives like “Make in India.”

This strategic investment is expected to significantly enhance India’s capabilities in the electronics and semiconductor sectors, fostering innovation and global competitiveness.