New Delhi:Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget 2025, announcing reforms in six domains and revising allocation for key technology projects. The government has enhanced allocation for production-linked incentives for mobile phones, IT hardware, semiconductor scheme, and IndiaAI Mission, by about 84 per cent to Rs 18,000 crore for the next fiscal.
Enhanced allocation for key technology projects
The largest allocation, amounting to Rs 8,885 crore, has been dedicated to the production-linked incentive (PLI) schemefor Large Scale Electronics Manufacturing, which primarily focuses on mobile phone production. Beneficiaries of the scheme include Apple vendors such as Foxconn, Tata Electronics, and Dixon Technologies in addition to other companies like Lava International, Samsung, and more.
The allocation for semiconductor projectshas more than doubled, reaching Rs 2,499.96 crore for the 2025-26 fiscal year, up from the allocation of Rs 1,200 crore for the current fiscal year. The government has secured a total investment commitment of Rs 1.52 lakh crore for various semiconductor projects. The Union Budget has also increased the allocation for compound semiconductors, sensors, chip assembly, testing, and packaging units by 56 per cent, raising it to Rs 3,900 crore from the revised allocation of Rs 2,500 crore for the current fiscal year.
The funding for the IndiaAI Missionhas been significantly increased, rising more than eleven-fold to Rs 2,000 crore. Under this mission, the country is planning to build a domestic large language model (LLM) and release it within six months, at an affordable cost.
Additionally, the funding for the Ministry of Electronics and IT has increased by approximately 48 per cent, reaching Rs 26,026.25 crore for the 2025-26 fiscal year. This is a significant rise from the allocation of Rs 17,566.31 crore for the current fiscal year.
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