(MENAFN- KNN India)
New Delhi, Jan 28 (KNN) industry leaders are calling on the Indian government to boost budgetary support for the Electronics and Semiconductor sectors in the upcoming Budget 2025, set to be presented by Finance Minister Nirmala Sitharaman on February 1.
The sector's growth is seen as vital to securing India's technological independence and economic future, especially in light of global challenges like US technology export restrictions.
Ajai Chowdhry, co-founder of HCL and chairman of EPIC Foundation, highlighted the need for India to secure "strategic autonomy" amidst the evolving global landscape, particularly with US sanctions impacting technology flows.
He emphasised the urgency of building India's own intellectual property (IP) and products to safeguard its future in the global market. Chowdhry proposed a dedicated Rs 44,000 crore allocation for the "Product Nation" initiative, with a major focus on semiconductor and system product development.
Meanwhile, the India Electronics and Semiconductor Association (IESA) has made its own set of recommendations. It has urged the government to significantly increase the Production-Linked Incentive (PLI) scheme for semiconductors, calling for an additional $20 billion over the next five years.
IESA President Ashok Chandak noted that India's semiconductor sector is at a crucial growth stage, buoyed by government initiatives and strategic partnerships.
Further, IESA advocated for a Rs 10,000 crore allocation to support research and development (R&D) efforts, especially in fostering industry-academia collaborations and prioritizing high-demand product development.
Vivek Tyagi, MD of Analog Devices India, also weighed in, stressing that while the current PLI schemes have set a solid foundation, India must now focus on developing an end-to-end supply chain ecosystem.
He called for stronger policies and an emphasis on "design-led manufacturing" to boost domestic operations.
Ramendra Verma, partner at Grant Thornton Bharat, pointed out the need for enhanced financial incentives and infrastructure investments. He underscored the importance of building critical semiconductor facilities, such as fabs and testing units, to ensure the sector's long-term growth.
(KNN Bureau)
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