The Union Budget 2025 has introduced three key reforms aimed at strengthening India’s electronics and semiconductor manufacturing ecosystem, Union IT and Railways Minister Ashwini Vaishnaw said on Saturday.Speaking after Finance Minister Nirmala Sitharaman’s Budget presentation, Vaishnaw highlighted the rationalisation of custom duties, taxation reforms on permanent establishments, and improved warehousing facilities for electronic manufacturing inputs as critical measures that will boost domestic production.
“These reforms, combined with ongoing industry efforts, will significantly expand India’s manufacturing capabilities,” he said. “Currently, we are producing laptops, servers, mobile phones, audio equipment, and medical devices. In the coming years, this sector could double or even triple in size, generating massive employment opportunities. Today, 2.5 million people are employed in electronics and mobile manufacturing alone, and this number is set to double.”
On the Production-Linked Incentive (PLI) scheme for electronics, which is set to expire in 2025-26, Vaishnaw indicated that the industry’s focus has now shifted towards deepening the value chain by manufacturing components, modules, and sub-modules within India.”The next step is to enhance the domestic production of active and passive components, which are already part of India’s semiconductor and component programs,” he said. “Additionally, the industry is placing greater emphasis on design capabilities to strengthen India’s position in global electronics manufacturing.”Also Read: Budget 2025 | Semiconductor outlay increases by 83%, mobile phone PLI gets a 55% boost
