MeitY budget outlay grows by 50% for FY25

The Union Budget 2024-25 announced today has allocated ₹21,936 crore to the Ministry of Electronics and Information Technology (MeitY). The allocation is 52% more than the revised estimate of FY24 which was ₹14,421 crore. This is also a 2.6% up from the interim budget allocation of ₹21,385.15 crore made in February. 

To be sure, the majority of the budget allocation increase is towards the production-linked incentive (PLI) scheme for semiconductors and large-scale electronics manufacturing and IT hardware. PLI for large-scale electronics manufacturing and IT hardware was increased from ₹4,559.88 crore (revised estimates 2023-24) to ₹6,200 crore, in line with the interim Budget. 

Further, the India AI Mission has been given a budgetary allocation of about ₹552 crore. Notably, in March, the Union Cabinet approved India AI mission at an outlay of ₹10,000 crore. This project, as MeitY mentioned, is being seen as a significant step towards progressing the country’s AI ecosystem. IndiaAI Independent Business Division will apply the mission under the Digital India Corporation. 

The budget allocation for cybersecurity projects saw about a 90% increase for FY25 amounting to ₹759 crore. That said, the allocation for Computer Emergency Response Team (CERT-In) under Telecommunications shrunk by over 95% to ₹8.54 crore.

In the FY25 budget announcement, Finance Minister Nirmala Sitharaman emphasized upskilling, the abolishment of the angel tax, and advancements in space technology as key priorities within the tech ecosystem.

“For the seventh consecutive year, the budget highlights technology as a cornerstone for growth. It aims to support startups, attract investors, and drive progress in manufacturing, agriculture, solar power, and the space economy. This approach leverages both traditional and modern pathways for sustainable development,” stated industry body Nasscom.