RBI sees India as an emerging global hub for chips, electronics manufacturing

India’s emerging sectors like renewable power and semiconductors are anticipated to make fast advances on the again of the current initiatives by the federal government, in keeping with the RBI’s annual report launched on Thursday.

The interim Union Budget 2024-25, with an allocation of ₹6,903 crore for semiconductor and show fabs, would contribute to creating India a global hub for chip and electronics manufacturing, the report states.

Investments beneath the production-linked incentive (PLI) scheme are prone to acquire additional momentum going ahead. These elements are anticipated to create new employment alternatives, enhance labour incomes and strengthen home demand. Taking into consideration these elements, actual GDP progress for 2024-25 is projected at 7.0 per cent, the report states.

The passage of ‘The Anusandhan National Research Foundation Bill, 2023’, has paved the best way for establishing the Anusandhan National Research Foundation (NRF), which would supply a lift to analysis and innovation in primary science, healthcare, and humanities.

Furthermore, the National Quantum Mission (NQM), accredited at a complete value of round ₹6,000 crore (2023-24 to 2030-31), would scale up scientific and industrial analysis and improvement (R&D) and modern ecosystem in quantum know-how (QT). It would propel nationwide priorities like Digital India, Make in India, Skill India and Stand-up India, Start-up India, Self-reliant India and Sustainable Development Goals (SDGs).

All these initiatives, together with government-led funding within the infrastructure sector and growing adoption of digital applied sciences, are prone to increase productiveness and potential progress within the medium time period, the report states.

(With inputs from IANS)