The Government of India has been actively promoting the semiconductor and display manufacturing ecosystem through its revised program. The Ministry of Electronics and IT allocated a budget of ₹1,503.36 crore for financial year 2024. However, as of March 31, 2024, only ₹681.11 crore of this allocation has been utilized.

Underutilization Of Funds

The Parliamentary panel has raised concerns about the underutilization of funds and urged MeitY to adopt realistic projections for future budgets. It has also recommended the establishment of an efficient planning and monitoring mechanism to ensure optimal use of resources. This advisory comes at a critical juncture when domestic and global semiconductor companies are increasingly eyeing India, drawn by the government’s subsidies and incentives under the semiconductor program.

India's strategic focus on semiconductors is part of its larger ambition to become self-reliant in the electronics sector. This initiative gains significance as the global demand for semiconductors surges, making it a key driver of economic growth and technological advancement. The government’s financial support includes subsidies for setting up semiconductor fabs, display manufacturing units, and other ancillary facilities.

Industrial Parks Project 

To attract investments, the government has also announced the establishment of specialized industrial parks, collaborations with global technology leaders, and skill development initiatives. However, the underutilization of funds highlights the need for a more streamlined approach to achieve the desired outcomes.

Efficient fund utilization, coupled with a robust strategy, can position India as a global hub for semiconductor manufacturing, paving the way for innovation and economic growth in the electronics industry. The panel's recommendations, if implemented effectively, could significantly bolster India’s aspirations in this domain.

Author Opinion 

Recently news has come out under which the Government of India is promoting the semiconductor and display manufacturing ecosystem through its revised program. This is a big thing for our country and for the Government also.