Shetal Mehta
Credit: LinkedIn/Shetal Mehta
The Union Budget for the upcoming financial year is slated to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. It has been anticipated that the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption, as per several reports.
As we fast approach the presentation of Union Budget, Shetal Mehta, Co-Founder of Suchi Semicon talked about the semiconductor industry and expressed the importance for the budget to address critical gaps in India's semiconductor ecosystem.
"While the allocation of ₹10,000 crore under the Production Linked Incentive (PLI) scheme has provided significant momentum, the focus now must shift towards strengthening domestic semiconductor manufacturing capabilities and driving innovation in Outsourced Semiconductor Assembly and Testing (OSAT)," he said.
"With global semiconductor revenue projected to reach $676 billion by 2025, India has an opportunity to strengthen its position in this sector. However, challenges remain in ensuring a reliable supply chain and achieving self-reliance in chip manufacturing."
Mehta also stated that the 2025 budget by offering incentives to attract global producers, reducing import dependency and strengthening the domestic technology ecosystem, can boost semiconductor manufacturing in India. This will intern drive job creation and facilitate economic growth.
He said, "Investments in creating semiconductor education programs and design labs in collaboration with academic institutions are critical to building a skilled workforce. Tax benefits for R&D expenditure and subsidies for accessing advanced tools can further support innovation in the sector."
"With the implementation of these measures, India can strengthen its role in the global semiconductor market, emerging as a prominent manufacturing hub and a key player in semiconductor innovation and growth," he added.