Finance Minister Sitharaman has announced a significant 48% hike in the FY26 allocation for MeitY, or Ministry of Electronics and Information Technology, which is responsible for key schemes in the electronics manufacturing and semiconductor ecosystem, taking funds at disposal higher to Rs 26,026.25 crore.
The increase in allocation is in line with the gradual increase in MeitY's budget over the years. In the Budget 2024-2025, Centre had announced an allocation of Rs 21,936.90 crore.
The majority of the increased allocation for MeitY is reflected across a bunch of IT-specific programmes such as the IndiaAI Mission, development of semiconductors, PLI schemes for large-scale electronics manufacturing as well as IT hardware.
The estimate for the 'modified scheme for setting up of compound semiconductors/silicon photonics/sensors fab/discrete semiconductors fab and semiconductor assembly, testing, marking and packaging (ATMP)/outsourced semiconductor assembly and test (OSAT) facilities in India' was increased from Rs 2,500 crore in the revised estimate for 2024-2025 to Rs 3,900 crore in the Union Budget for 2025-26.
The central government increased the estimate for the 'Modified Scheme for Setting up of Semiconductor Fabs in India' from Rs 1,200 crore in revised estimate for 2024-25 to Rs 2,499.96 crore for FY26.
Notably, the government has also factored in Rs 2,000 crore allocation for the IndiaAI program in the FY26 budget, out of the previously announced allocation of Rs 10,738 crore. IndiaAI aims to amplify India's artificial intelligence infrastructure.
The ministry, apart from the semiconductor and hardware PLI scheme, is also responsible for public sector undertakings such as National Informatics Centre, Centre for Development of Advanced Computing, Indian Computer Emergency Response Team, among others.
The budget estimate from C-DAC increased marginally to Rs 275 crore; Unique Identification Authority of India (UIDAI) remained unchanged at Rs 600 crore, and semiconductor laboratory's budget projection has been increased marginally to Rs 500 crore.
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