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.