According to the Reserve Bank of India’s (RBI) annual report, India’s sectors like electronics manufacturing and semiconductors are expected to make rapid advances on the back of the recent initiatives by the government.
The report stated that the interim Union Budget 2024-25, with an allocation of Rs 269.03 billion for semiconductor and display fabs, would contribute to making India a global hub for chip and electronics manufacturing.
It added that the investments under the production-linked incentive (PLI) scheme are likely to gain further momentum going forward. These factors are expected to create new employment opportunities, improve labour incomes, and strengthen domestic demand. Taking into account these factors, real GDP growth for the financial year 2024-25 (FY25) is projected at 7 per cent.
It further added that the National Quantum Mission, approved at a total cost of around Rs 260 billion (2023-24 to 2030-31), would scale up scientific and industrial research and development and innovative ecosystem in quantum technology. It would propel national priorities like Digital India, Make in India, Skill India and Stand-up India, Start-up India, Self-reliant India, and sustainable development goals.
Furthermore, the report noted that all these initiatives, along with government led investment in the infrastructure sector and increasing adoption of digital technologies, are likely to boost productivity and potential growth in the medium term.
