NEWS

The government has allocated ₹6,903 crore in the Union Budget to boost local semiconductor manufacturing and electronic components, including ₹4,203 crore for compound and discrete semiconductor units and ₹1,500 crore for chip plants. Tariff reductions on critical raw materials like lithium and copper, alongside exemptions for specific electronic parts, aim to strengthen the domestic electronics ecosystem. Finance Minister Nirmala Sitharaman announced zero BCD on oxygen-free copper for resistors and reduced tariffs on silicon materials to support a robust semiconductor production environment. Industry leaders welcomed the measures, highlighting a 52% budget increase for semiconductors and incentives for mobile and IT hardware manufacturing. Skilling initiatives and employment-linked incentives were also introduced to address the demand for a skilled workforce in electronics manufacturing.