The Union Budget for 2025 is expected to play a crucial role in accelerating India’s growth in the semiconductor and manufacturing sectors. With a notable increase in the allocation for semiconductors, the government’s focus on self-reliance and global competitiveness is clear. Key industry leaders foresee enhanced policy support, including extended financial incentives, R&D grants, and improved infrastructure. The government is also likely to prioritize the development of a skilled workforce and tax benefits for MSMEs and startups. These measures, along with the expansion of the Production-Linked Incentive (PLI) scheme, are expected to drive innovation, support the ‘Make in India’ initiative, and position India as a global leader in manufacturing and technology. The continued focus on sustainability, digital transformation, and job creation will be pivotal in shaping the future of India’s manufacturing and semiconductor landscape.
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According to Mr. Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd
With the success of last year’s initiatives in the semiconductor and manufacturing sectors, we expect the upcoming Union Budget to further accelerate growth and innovation. The Indian government allocated ₹6,903 crore to the semiconductor industry in the 2024–25 Union Budget, reflecting a 52% increase from the previous year. This significant rise demonstrates the government’s commitment to reducing India’s reliance on imported semiconductors, creating high-tech jobs, and enhancing global competitiveness.
We anticipate a continued focus on strengthening the semiconductor and display manufacturing sectors. This includes expanding the establishment of semiconductor fabs, modernizing infrastructure, and bolstering India’s position in global supply chains. Additionally, tax reductions on electronic components and raw materials, along with exemptions on critical minerals such as lithium, copper, and rare earth elements, are expected to further boost India’s competitiveness in the global market.
The government’s emphasis on advancing technology, creating high-tech jobs, and solidifying India’s role in global supply chains will be pivotal in establishing the country as a global hub for semiconductor manufacturing. These efforts are expected to provide sustained economic benefits and position India as a leader in the rapidly evolving tech industry.
Mr. Alok Nigam, Managing Director, Brother International India Pvt. Ltd
The Union Budget 2025 arrives at a crucial time for India’s manufacturing sector, as the demand for advanced printing and office automation continues to grow at a CAGR of 6-8%. In 2024, Brother India made significant strides in expanding our presence across Tier 2 and Tier 3 cities and introducing sustainable, energy-efficient solutions that resonated strongly with our customers.
To build on this progress, I hope the government broadens the Production-Linked Incentive (PLI) scheme to include office automation and printing technologies. Rationalizing import duties on critical components can further accelerate innovation and support the ‘Make in India’ initiative. If the budget shows us the support, we expect a 25-30% growth in the consumer electronics segment.
India’s MSMEs, contributing over 30% to the GDP, need greater access to digital infrastructure and automation technologies. Tax incentives, subsidies, and investments in Tier 2 and Tier 3 cities can ensure the widespread adoption of advanced solutions.
With a focus on innovation, digital transformation, and sustainability, the Budget 2025 has the potential to position India as a global leader in office automation while empowering businesses to compete on a global stage.
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According to Mr. Avinash Srivastava, Senior PR Account Executive, UBON
As a tech enthusiast and PR professional with experience across multiple brands, I deeply understand the critical role semiconductor manufacturing plays in shaping India’s technological future. The semiconductor and electronics sector is pivotal for driving India’s technological transformation. We expect enhanced policy support for semiconductor manufacturing under the PLI scheme in the upcoming budget. This includes extended financial incentives, R&D grants, and measures to strengthen the domestic supply chain to reduce import dependency.
Additionally, investments in skilling initiatives to cultivate a highly specialised workforce will be critical to achieving self-reliance. Tax benefits for MSMEs and startups in this domain could foster innovation and attract global players to collaborate within India. A robust infrastructure and clear regulatory roadmap can position India as a global hub for semiconductor and electronics manufacturing, aligning with the “Make in India” vision.
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