Highlights

  • Funds under key schemes such as PLI for IT hardware, Semicon India, and IndiaAI Mission underutilised.

  • India’s electronics production is currently focused on final assembly.  There is limited presence in component manufacturing, which accounts for higher value addition.  A dedicated scheme for component manufacturing has been launched to address this gap.

  • India’s IT sector exports are concentrated in USA and EU.  AI-related disruptions and geopolitical tensions pose uncertainties for the sector.

The Ministry of Electronics and Information Technology (MeITY) is responsible for the formulation and implementation of policies related to electronics, internet, and information technology (IT).[1]  It promotes e-governance, facilitates the growth of the electronics and IT sectors, and promotes skilling in these sectors.  MeITY also plays a role in ensuring a secure cyber space in India.1

This note analyses the expenditure by MeITY and the implementation of its key schemes.  It also discusses some issues related to the functioning of the Ministry and the sectors it oversees.

Key Budget Proposals for 2026-27

  • All IT services will be clubbed under a single category with a common safe harbour margin of 15.5%.  The threshold to avail safe harbour will be increased from Rs 300 crore to Rs 2,000 crore.

  • Tax holidays will be provided till 2047 to any foreign company that provides cloud services using data centres from India.  However, it must also provide services to Indian customers through an Indian reseller.

  • Basic customs duty will be exempted on specified parts used in the manufacture of microwave ovens.

  • Safe harbour will be provided to non-residents for electronic component manufacturing.

Overview of Finances

In 2026-27, MeITY has been allocated Rs 21,633 crore, 17% lower than the budget allocation in 2025-26 (Rs 26,026 crore).  This has been driven by reduced allocations towards Performance Linked Incentive (PLI) schemes and the IndiaAI Mission.  Allocation towards this Ministry has grown at an annual rate of 20% between 2017-18 and 2026-27.  The allocation nearly doubled between 2022-23 (Rs 14,300 crore) and 2025-26 (Rs 26,026 crore).  This can be attributed to the launch of schemes to incentivise electronics and IT manufacturing.  Utilisation of funds allocated to MeITY has varied.  It remained above 75% in all years from 2017-18 to 2021-22.  Since then, it has ranged from 57% in 2022-23 to an estimated 78% in 2025-26. 

Figure 1: Budget allocation towards MeITY increased at 20% annually

Note: Revised estimate taken as actual expenditure for 2025-26.
Source: Union Budget for various years; PRS.

Table 1:  Budget allocation towards key schemes implemented by MeITY (in Rs crore)

Scheme

2024-25 Actual

2025-26 RE

2026-27 BE

% change from 25-26 RE to 26-27 BE

Semicon India

638

4,300

8,000

86%

NIC

1,380

1,550

1,595

3%

PLI Schemes

5,756

7,000

1,527

-78%

Of which Large Scale Electronics Manufacturing

5,739

6,960

1,345

-81%

ECMC

-

7

1,500

21959%

R&D in IT/ Electronics/ CCBT

1,176

1,250

1,248

-0.1%

IndiaAI Mission

19

800

1,000

25%

ISM 2.0

-

-

1,000

-

Total

13,661

20,233

21,633

7%

Note: BE is budget estimate and RE is revised estimate.  NIC – National Informatics Centre, ECMC – Electronics Component Manufacturing Scheme, ISM – India Semiconductor Mission.
Source: Demands for Grants 2026-27, MeITY; PRS.

In 2026-27, 37% of MeITY’s budget has been allocated towards the Modified Programme for Semiconductor Development (Semicon India).  This scheme provides financial support for the design and manufacturing of electronics like semiconductors and display fabs.  Other key items of expenditure include the National Informatics Centre (Rs 1,595 crore), and Production Linked Incentives (PLI) schemes (Rs 1,527 crore). 

The IndiaAI Mission has been allocated Rs 1,000 crore in 2026-27, as opposed to Rs 2,000 crore in 2025-26.  Allocations have also been made towards the Electronics Component Manufacturing Scheme (Rs 1,500 crore) and the India Semiconductor Mission 2.0 (Rs 1,000 crore), which were announced in the 2026-27 Budget.

Overview of Key Expenditure

India Semiconductor Mission (ISM)

India Semiconductor Mission was approved in 2021, with the aim of building infrastructure for semiconductor and display manufacturing.[2],[3]  It implements the Modified Scheme for the Development of Semiconductors and Display Manufacturing Ecosystem in India (Semicon India), and also determines long-term strategies for the domain.1  The Semicon India scheme was launched with a proposed outlay of Rs 76,000 crore.2 

Table 2: Key components of the India Semiconductor Mission

Sub-component

Financial Support

Achievement

Semiconductor Fabs

50% of project cost

Ten semiconductor projects approved, with cumulative investment of Rs 1.6 lakh crore.  Includes one foundry, and nine OSAT facilities.

Capacity of more than 24 billion units per year expected.

Display Fabs

Compound Semiconductors and others

50% of capital expenditure

Design-Linked Incentive Scheme

Linked to product design or net sales

23 companies (with 24 designs) supported

Note: OSAT is outsourced semiconductor assembly and testing.   Data is as of December 2025.  See Table 12 in Annexure for more details.
Source: Unstarred Question No. 1497, Rajya Sabha, December 12, 2025; PRS.

The fourth sub-component of Semicon India is the Design-Linked Incentive (DLI) scheme, launched in 2021 for five years.[4]  This scheme aims to facilitate the growth of at least 20 domestic semiconductor design companies, to achieve a turnover of more than Rs 1,500 crore.  Financial incentives of two types are provided: (i) reimbursement of up to 50% of eligible expenditure capped at Rs 15 crore (Product Design Linked Incentive), and (ii) incentive of 4%-6% of net sales turnover capped at Rs 30 crore (Deployment Linked Incentive).  As of December 2025, 23 companies have been provided support to design chips and systems-on-chips.[5]  These chips may be applied to areas such as satellite communication, drones, artificial intelligence (AI) devices, and telecom equipment.5

Funds under the Semicon India scheme have been underutilised since 2023-24.  Fund utilisation was 23% in 2023-24 and 9% in 2024-25.  It is estimated that 61% of funds will be spent in 2025-26.  This scheme has been allocated Rs 8,000 crore in 2026-27 (including Rs 900 crore for the modernisation of the Semiconductor Laboratory, Mohali).  Underutilisation of funds has been attributed to the structure of the scheme.[6]  Incentives are disbursed only when companies selected under the scheme meet targets.6

Figure 2: Funds under Semicon India underutilised

Note: Revised estimate used as actuals for 2025-26.

India Semiconductor Mission 2.0 was announced in the Union Budget of 2026-27.[7]  Rs 1,000 crore has been allocated towards this.  This phase is expected to focus on: (i) producing semiconductor equipment and materials in India, (ii) designing full stack Indian semiconductor intellectual property, and (iii) fortifying domestic and global supply chains.[8]

Production Linked Incentive (PLI) Schemes

Since 2020, MeITY has implemented PLI schemes to promote domestic manufacturing of electronics and IT hardware.[9],[10]  These schemes incentivise manufacturers based on incremental sales of goods manufactured in India.  There are two such PLI schemes, for: (i) large scale electronics manufacturing (LSEM), and (ii) IT hardware.[11],[12]

Table 3: Details of the PLI Schemes for Large Scale Electronics Manufacturing (LSEM) and IT Hardware

 

LSEM

IT Hardware

Outlay

Rs 40,951 crore from 2020

Rs 7,350 crore for first round, and Rs 17,000 crore for second round from 2023 (scheme 2.0)

Incentive Rate

Begins at 6%, reduces progressively to 4%

Begins at 4% in first year, reduces to 1%-2% in the fourth year

Products covered

Mobile phones and electronics components, eg. printed circuit boards, discrete semi-conductor devices, and passive components

Laptops, tablets, all-in-one PCs, ultra-small form factor PCs and servers

End year

2025-26

2029

Source: Scheme guidelines, Unstarred Question 3308, Lok Sabha, MeITY, March 23, 2022; Annual Report 2024-25 MeITY; PRS.

The PLI scheme has seen significant uptake for LSEM, particularly the manufacturing of mobile phones.  The value of smartphones exported from India increased from about 7 billion USD in 2022 to 20 billion USD in 2024 (see Figure 3).[13] 

However, the PLI scheme for IT hardware 2.0 has underperformed (see Table 4).  About 20% of the investment target, and 3% of the production target have been achieved. 

Table 4: Achievements under PLI schemes (as of February 2025, in Rs crore)

 

LSEM

IT Hardware

Target

Achievement

Target

Achievement

Investment

7,000

10,905

2,430

522

Production

8,12,000

7,15,823

3,35,000

10,365

Exports

4,87,000

3,90,387

-

-

Employment

-

1,39,670

75,000

5,132

Note: Achievement refers to the total investment, production, exports, or employment created by all companies receiving support under the scheme.  Employment refers to the number of direct jobs created.
Source: Rajya Sabha Starred Question No. 361, April 4, 2025; Annual Report 2024-25, MeITY; PRS.

Figure 3: Trade value of telephones and related communications equipment exported from India

Source: UN Comtrade Database; PRS.

Funds under the PLI scheme have been underutilised since 2022-23.  The Ministry has noted that this is due to fewer claims been made under the scheme.[14]  The scheme requires companies to achieve defined investments and sales threshold, without which claims cannot be made and funds cannot be disbursed.14  The two PLI schemes have been allocated Rs 1,527 crore in 2026-27, 78% less than the revised estimates for 2025-26. 

Digital India – Electronics & IT

Scheme for the Promotion of Electronics and IT Hardware Manufacturing

Three schemes have been grouped together under this head.  Together, they have been allocated Rs 720 crore for 2026-27, 16% higher than the revised estimates for 2025-26 (Rs 620 crore).  They are discussed below:

Modified Special Incentive Package Scheme (M-SIPS):  This scheme was launched in 2012 to promote large scale manufacturing in India.1  It provides a five-year capital subsidy to manufacturers in 44 categories across the electronics value chain.1  The subsidy rate is 20% for investing in Special Economic Zones (SEZs) and 25% in non-SEZs.1  As of March 2025, this scheme is estimated to have generated investment of Rs 48,437 crore and employment for more than four lakh individuals.[15]

Electronics Manufacturing Cluster Scheme (EMC): Manufacturing clusters are known to accelerate the development of electronics manufacturing infrastructure.[16]  The scheme (first launched in 2012) was modified and re-implemented in 2020. 1,16  Under the modified scheme (EMC 2.0), financial assistance of up to 50% of the cost of a greenfield EMC (capped at Rs 70 crore for every 100 acres) will be provided.1  75% of the project cost, with a ceiling of Rs 75 crore, will be provided for developing Common Facility Centres (CFCs).1  

As of December 2025, 11 EMCs and two CFCs have been approved, with a total project cost of Rs 5,226 crore (see Table 14)16.  Of this, Rs 2,493 crore will be central assistance.  Nine units have started production in the EMCs and generated investment of Rs 12,570 crore and created 13,680 jobs.16

Electronics Development Fund (EDF): The EDF aims to provide risk capital to the electronics manufacturing industry, and encourage innovation  and market-driven R&D.1  It acts as a ‘Fund of Funds’, and has invested in several ‘daughter’ funds, which in turn invest in start-ups and other companies.[17]  Ventures supported by the EDF work in robotics, autonomous cars, Internet of Things, cybersecurity, AI, etc.1  As of September 2025, the EDF has invested Rs 258 crore, and daughter funds have invested Rs 1,336 crore.17  Together, this investment has funded 128 startups.17

IndiaAI Mission

The IndiaAI Mission aims to create a robust AI ecosystem in India, by building strategic partnerships across the public and private sectors.1  It aims include: (i) democratising access to computing power, (ii) improving data quality, and (iii) developing indigenous AI capabilities.1  The scheme was launched in March 2024, with an approved outlay of Rs 10,300 crore.[18]  While allocation towards the scheme quadrupled between 2024-25 and 2025-26, utilisation has been less than 50% since its launch. 

Figure 4: Low fund utilisation under IndiaAI

Note: Revised estimate used as actual for 2025-26.
Source: Budget documents; PRS.

Table 5: Pillars of the IndiaAI Mission

Pillar

Objectives

Compute Capacity

Build a high-end scalable AI computing ecosystem with at least 10,000 GPUs

Datasets Platform

Enhance the quality of, and access to public sector datasets

Applications Development Initiative

Develop and promote the use of AI solutions

Startup Financing

Support AI startups at all stages

Innovation Centre

Develop and deploy indigenous Large Multimodal Models trained on Indian datasets

FutureSkills

Increase the number of persons with a graduate degree (or above) in the AI domain, support students working in this domain through fellowships, and establish Data and AI Labs in Tier 2/3 cities

Safe & Trusted AI

Develop AI governance frameworks

Source: Annual Report 2024-25, MeITY; PRS.

A key pillar of the mission is IndiaAI Compute Capacity.18  This project aims to create a scalable AI computing infrastructure using over 10,000 Graphics Processing Units (GPUs).18  GPUs are computer chips that can perform a large number of operations faster, and more efficiently than regular chips.[19]  This makes them crucial for training and deploying AI models.  As of December 2025, India’s national compute capacity had crossed 38,000 GPUs.19  In February 2026, it was announced that 20,000 GPUs would be added to the existing capacity.[20]   

Electronics Component Manufacturing Scheme

The Electronics Component Manufacturing Scheme (ECMS) was notified in April 2025, and aims to incentivise investment into India’s electronics component manufacturing ecosystem.[21]  Components contribute a significant part of the value of a finished product.[22]  Enhancing the domestic component manufacturing ecosystem could improve domestic value addition, and reduce component imports.22  ECMS provides three types of incentives.  These are: (i) turnover linked incentives (as a percentage of incremental turnover/sales), (ii) capex incentive (on eligible capital expenditure for manufacturing), and (iii) hybrid incentive (by combining the previous incentives).22  Product segments targeted include sub-assemblies, bare components, and capital equipment for electronics manufacturing.22 

ECMS was approved with a total outlay of Rs 22,919 crore.[23]  Its tenure is for six years, with an optional one-year gestation period.  As of December 2025, 24 applications have been approved under ECMS.[24]  Together, they are projected to generate investment of Rs 12,704 crore, production of Rs 1,09,517 crore, and employment for about 17,000 individuals.24  The total outlay towards ECMC was proposed to be increased to Rs 40,000 crore in  the Union Budget 2026-27.  The scheme has been allocated Rs 1,500 crore for 2026-27.

Electronics and IT industry in India

Electronics System Design and Manufacturing

In 2022, global electronics production was worth USD 4.3 trillion.22  As of 2024, electronics manufacturing had a market size of USD 155 billion in India.[25]  The demand for electronics hardware is expected to grow rapidly, crossing USD 400 billion in 2025.[26]  This could increase India’s import burden.  Strengthening India’s electronics manufacturing ecosystem could increase domestic production and exports.26  This sector is also of strategic importance.  National security concerns also require India to focus on electronics manufacturing, from the integrated circuit/chip level to the final product.26  UNCTAD (2025) has also noted that investment in technology and the digital economy acts as a growth engine.[27]

It is estimated that more than two-thirds of world trade occurs through global value chains (GVCs).[28]  In GVCs, production, marketing, distribution, and customer service activities are carried out by companies across geographies.25  The electronics GVC is complex, and controlled by a small group of nations.25  These include China, Taiwan, USA, South Korea, Vietnam, Japan, Mexico, and Malaysia.25  As of 2022, India contributed 2% of global electronics production.25     

Figure 5: India’s contribution to global electronics exports low across product segments

Note: The top global exporter is China, except for chips, where the top exporter is Hong Kong.  Mobiles phones also include other telecom equipment.  Power equipment includes transformers and converters.
Source: Trade Watch - Q2 FY 2025-26, NITI Aayog; PRS.

Before GVCs, countries could only export final products, which required extensive production capability.28  GVCs allow countries to specialise in a part of the production process, and increase the exports of goods and services.28  For labour-rich economies, integrating into GVCs can improve value addition and employment in the medium-term.[29]  However, there are also concerns about relying on a few countries for the supply of semiconductors and other electronics components.29  This raises the question of whether India should focus on integrating with GVCs, or prioritising end-to-end domestic sourcing. 

Figure 6: A small group of countries control global electronics production (as of 2022)

Note: Data includes production of end-devices and components.
Source: NITI Aayog; PRS.

Minimal presence in design and manufacturing

The electronics value chain comprises design, manufacturing, and assembly services.25  The total electronic design market in India was estimated at Rs 35,000 crore in 2020.4  However, there are few domestic design companies for electronic products like mobile phones, IT hardware, smart meters, etc.4

Original equipment manufacturers (OEMs) have the capacity for end-to-end manufacturing internally.25  Often, companies focus on a part of the value chain to provide services.  OEMs, which own the intellectual property rights (IPR) of products, may also sub-contract other companies in the value chain.25  Original Design Manufacturers (ODMs) produce chip designs and prototypes.25  Component makers manufacture components for ODMs/OEMs.25  Assemblers are sub-contracted by ODMs/OEMs for assembly, testing, and packaging.25  See Table 15 in the Annexure for India’s presence across product segments. 

Table 6: India has significant presence in assembly, but little impact in manufacturing or design

Value chain component

India’s presence

Design

No major scaled-players, some start-ups exist

Component Manufacturing

Small presence in low-tech and low-complexity components, such as cables, connectors, and electro-mechanicals.

Assembly

Significant presence, including global players like Apple, Foxconn, and Samsung.

OEMs

Presence of major global brands, some local OEMs

Source: NITI Aayog; PRS.

High capital costs and cost disabilities

Electronics manufacturing is capital intensive, requiring both large initial investments and working capital.25  For example, a modern semiconductor factory requires ten billion USD to set up.29  Domestic manufacturers also face disabilities due to infrastructure challenges, such as poor supply chain logistics, and inadequate land availability.[30]  A stable power supply is also required by this sector.  While power supply has improved, it remains unreliable and expensive in many parts of India.30

Further, the cost of accessing capital is in India is typically five to six percentage points higher than international rates.30,25  Other countries, like China, Taiwan, and Vietnam, provide interest subsidies for this sector.  These measures have reduced interest rates in those countries to 2%-7%.25  

Table 7: Breakdown of cost disabilities affecting Indian electronics manufacturers

 

Components

Assembly

Tariffs and material costs

4%-5%

5%-6%

Logistics

2%-3%

2%-3%

High finance costs

Up to 4%

1%-2.5%

Cumulative

14%-18%

10%-14%

Note: Figures compare India with China.
Source: NITI Aayog; PRS.

SPECS: The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) aimed to offset high upfront costs in electronics manufacturing.[31]  It offered incentives of 25% of capital expenditure for the manufacture of listed electronic goods.  The scheme ended in March 2024.1 

As of December 2024, 58 applications were approved under the scheme.1  Approved applicants invested Rs 9,482 crore, against the initial expectation of Rs 20,000 crore.1  The scheme was estimated to generate direct and indirect employment for 6,00,000 people.  Approved applications employed 39,092 people.1 

High tariffs and inverted duty structure

India has a relatively high tariff rate as compared to other Asian countries.25  While this could be effective in reducing imports of finished goods, it could also increase the cost of domestically manufactured products.  Currently, a significant proportion of electronics components are imported.25  The cost of these imports (with tariffs) are passed on to the final product manufactured domestically.25  This could lead to a situation where it is cheaper to import finished goods than to produce domestically.29  For example, while manufacturing equipment is imported at zero customs duty, critical parts and sub-parts attract duties from 5% to 25%.[32]    

Table 8: India has higher average tariffs (in %) than leading electronics manufacturers across product segments

Product

India

China

Vietnam

Chips

1.5%

2.8%

1.4%

Mobile phones

7.6%

1.7%

1.6%

TVs, monitors, and projectors

14.7%

13.4%

12.1%

Semiconductors and LEDs

8.6%

11.2%

8.4%

Power equipment

13.3%

4.4%

3.8%

Machine parts

8.3%

2.4%

1.4%

Electrical Control Panels and switchboards

11.8%

7.0%

7.4%

Source: Trade Watch - Q2 FY 2025-26, NITI Aayog; PRS.

Customs duties were revised in the Union Budgets of 2024-25, 2025-26, and 2026-27, to promote domestic manufacturing of components and final products.32  These changes have also corrected duty distortions, for example, with display panels and mobile phone components.32  However, further duty rationalisation may be required to promote long-term competitiveness of the electronics manufacturing ecosystem.32

NITI Aayog (2026) noted that the principal beneficiaries of the PLI scheme for large scale electronics manufacturing were contract manufacturers for Apple.32  This includes companies like Foxconn, Tata Electronics, Pegatron, Samsung, and Dixon Technologies.32  These companies were able to utilise the five-year timeframe of the scheme to offset initial scale and cost disadvantages.32 

Underdeveloped component manufacturing ecosystem

Components account for a significant part of the total value of electronics.22  As of 2022, about 42% of global electronics production went towards electronics components.22  This proportion was 9% in India in 2023-24.1  India’s component manufacturing ecosystem is underdeveloped across product segments (see Table 15).22  India remains import-dependent for components such as semiconductors, batteries, and displays.32  It is a marginal producer in high-value, technology intensive components.32 

Figure 7: India is a net importer of many electronics components (2024)

Note: Negative values indicate that imports exceed exports.
Source: Trade Watch - Q2 FY 2025-26, NITI Aayog; PRS.

NITI Aayog (2024) noted some reasons for domestic component manufacturing not improving despite several schemes and incentives.22  Component manufacturing has a low turnover-to-investment ratio.22  Other issues include those faced by manufacturers of final electronics products, such as high upfront capex and long gestation periods.22 

Cluster-based model has not created sufficient infrastructure

Clusters are expected to provide electronics manufacturers shared facilities like warehouses, tool rooms, and effluent treatment plants.25  These help reduce the cost of operations for electronics manufacturers, especially small and medium enterprises.25  Despite the EMC scheme, India does not have sufficient infrastructure to attract electronics manufacturers.25  Other nations have supported manufacturing clusters in different ways.  In Vietnam, clusters have warehouses of different sizes with lab infrastructure.25  Taiwan has developed tech clusters, with 0% Value Added Tax, corporate tax capped at 17%, and uninterrupted water and power.25     

Lack of skilled workforce and low productivity

The lack of a highly skilled workforce is a key challenge in building a competitive ESDM ecosystem in India.25,29  NITI Aayog (2024) noted that there were insufficient numbers of training institutes dedicated to electronics manufacturing.25  It also noted a gap between the skilling and training provided to graduates, and industry requirements.25  The lack of a manufacturing ecosystem also hampers opportunities for internships and hands-on-training.25  This has resulted in companies incurring additional costs in training employees.25  This could also involve training in foreign locations, due to inadequate facilities in India.  Skill issues persist even after entering the workforce (See Table 9).

Inadequate training, outdated practices, and insufficient investment in workforce development have led to low labour productivity in ESDM.25  Foreign professionals are brought to India for training and knowledge transfer to the local workforce.25  However, delays in visa approval hinders this process.25

Table 9: Skills gaps exist at all levels of employment

Level

Skill Gaps

Entry-level operators

Lack of technical skills and familiarity with manufacturing equipment/techniques

Mid-level technicians/ supervisors

Lack of access to laboratories; training programmes based on outdated industry practices

High-level engineers/ managers

Lack of talent with technical skills and leadership skills.

Source: NITI Aayog; PRS. 

Semiconductor Manufacturing

Semiconductors (or chips) are crucial components of all electronics.[33]  The size of the Indian semiconductor market was about 38 billion USD in 2023, and is expected to grow to 100-110 billion USD in 2030.33  The global semiconductor supply chain is concentrated in a few countries, including the United States, Taiwan, South Korea, and China.29  This sector has strategic importance, as supply disruptions in semiconductors can affect economic activity across various sectors.29  The semiconductor value chain is visualised in Figure 8.   

Figure 8: Semiconductor Value Chain

Note: TSMC – Taiwan Semiconductor Manufacturing Company, SMIC – Semiconductor Manufacturing International Corporation, OSAT – Outsourced Semiconductor Assembly and Testing.  Source: PRS.

See Table 2 on page 2 for an analysis of India Semiconductor Mission and its achievements.

Underdeveloped domestic design ecosystem

The first step of semiconductor manufacturing, chip design, is a complex process.29  It requires multidisciplinary research, substantial investments, and a skilled workforce.  Japan, South Korea, Taiwan, and USA are leaders in chip design.29  Together, they account for 80% of global semiconductor design revenue.29  These countries have invested in R&D over a long period of time, and built on pre-existing intellectual property.29 

The domestic semiconductor design ecosystem has a cumulative annual revenue less than Rs 150 crore.4  This is despite 20% of the world’s semiconductor design engineers being based in India.4  Further, only a small fraction of the IPR generated by India’s design ecosystem rests with Indian companies.4  It is mostly held by global companies. 

Information Technology/ IT enabled Services

The Information Technology/ Information Technology enabled Services (IT/ ITeS) sector is estimated to generate a revenue of 283 billion USD in 2024-25 (about 7% of India’s GDP).[34],[35]  As per RBI estimates, India exported software services worth 205 billion USD in 2024-25.[36]  IT services account for 64% of these exports, and business process outsourcing (BPO) for 27%.36  The sector also employs 5.8 million individuals.34  Some of the advantages that the Indian IT/ITeS sector offers are cost-effectiveness, high quality, timeliness, and the use of latest technologies.34 

Role of Global Capability Centres

As of 2023-24, India has over 1,700 global capability centres (GCCs).34  These are offshore units of multinational companies, which perform business operations, engineering, and technology development for the company.34  GCCs have grown in terms of number, revenue, and employment generation in the past few years.34 

During this time, the nature of services provided by GCCs have also changed.  While they previously focused on supporting functions, they now perform core activities.34  These include product development, engineering, analytics, and cybersecurity.  GCCs have also expanded into Tier 2 and Tier 3 cities.34 

Table 10: GCCs have grown significantly between 2019-20 and 2024-25

 

2019-20

2023-24

Number

1,430

1,700

Revenue (in billion USD)

40

65

Headcount (in lakh people)

14

19

Source: Economic Survey 2025-26; PRS.

Speed and ease of doing business

NITI Aayog (2026) noted that the speed and ease of doing business had to be improved to attract global investments into India.[37]  It noted issues such as: (i) fragmented and sequential approval processes, (ii) repetition of documentation and clearances, (iii) disconnected repositories like PAN, GSTIN, Aadhaar, etc, and (iv) central, state, and municipal clearances operating through separate portals.37 

It recommended strengthening the existing National Single Window System to provide a unified approval process across all three levels of government.37 Additionally, data and form formats should be standardised, and enforceable timelines with accountability mechanisms should be established.37

Geopolitical tensions affect IT workers

Geopolitical uncertainties and AI disruptions have led to a slow growth phase for the domestic IT industry.37  Barriers to the movement of skilled workers have increased, through stricter visa regimes and higher visa costs.37  There is also growing emphasis in many countries on data localisation and digital sovereignty, which increases the regulatory burden on companies.37 

Exports concentrated in US, EU

The USA and the EU are the destinations for 70% of India’s software exports.36  Further, multi-national companies originating in the USA are the largest employers in India, especially through GCCs.37  Changes in the US market could affect the domestic industry’s performance.  NITI Aayog (2026) recommended that companies prioritise growth hotspots like Japan, the Middle East, and India’s domestic market and invest in regional delivery models.37  

Figure 9: More than half of India's software exports go to the USA

Note: Europe excludes the UK; Oceania includes Australia and New Zealand.
Source: RBI; PRS

Rising demand for data centres

The growth of artificial intelligence and machine learning, and rapid adoption of cloud technologies have led to an increased demand for computational facilities, especially data centres.34  These are high-performance facilities which are used for computation needs of sophisticated technology operations.34  About three per cent of global data centres are in India.34  This is despite India generating about 20% of the world’s data.  India’s data centre capacity is estimated to reach eight GW by 2030, from 1.4 GW in 2025.34  Japan, Malaysia, and Vietnam have also emerged as competitive data centre hubs.34

Data centres are considered energy and water intensive.  The Ministry of Power has estimated that the power requirement of data centres will be about 13-14 GW by 2031-32.[38]  Structural issues in India, such as energy shortages will have to be addressed for data centre capacity to increase.34  The power requirements of AI data centres could also strain the grid.  In 2024, simultaneous loss of 1,500 MW of power from data centres in Northern Virginia caused significant voltage depression and frequency variation in the power grid.[39] 

Data centres use about 7,000 litres of water per megawatt-hour of energy consumed.[40]  The International Energy Agency estimated that a 100 MW (0.1 GW) data centre may consume the same amount of water as 2,600 US households.40 

However, these requirements are dependent on the size of the data centre.  Google’s data centres located in The Dalles, Oregon accounted for 30% of the city’s water consumption in 2023.40  The water requirement of smaller data centres within office buildings may only be incremental.40 


Figure 10: Data centres concentrated in high-income countries globally, and in large cities in India

Note: HIC – High income countries; UMIC – Upper middle income countries. Figures may not add up to 100% due to rounding.
Source: Economic Survey 2025-26; Press Information Bureau; PRS.

Schemes for the Promotion of IT/ITeS Industries

This head includes two schemes, viz., the India BOP Promotion Scheme (IBPS) and the Northeast BPO Promotion Scheme (NEBPS).1  These schemes aim to promote the operationalisation of BPO and ITeS companies in smaller cities.  The schemes were launched with a total outlay of Rs 543 crore, and their tenures ended in March 2019 (IBPS) and March 2020 (NEBPS).1  However, disbursement under the scheme may continue for longer.1 

Table 11: 85% of seats operationalised under BPO/ITeS promotion schemes, and 25% of incentives disbursed

 

Target

Achievement

Units Established

-

246

Operational Seats

53,300

45,543

Incentive Disbursed

(in Rs crore)

533

134

Note: Incentive target computed as available seats multiplied by maximum available incentive per seat (one lakh rupees).
Source: Unstarred Question No. 2300, Rajya Sabha, MeITY, December 19, 2025; Annual Report 2024-25, MeITY; PRS.

Under the schemes, companies willing to establish BPO/ITeS operations could apply for seats (a functional work position).1  48,300 seats were available under IBPS, and 5,000 under NEBPS.1  Financial support of up to one lakh rupees per seat was provided.1  Additional incentives were provided for: (i) operating in non-capital cities, (ii) promoting local entrepreneurs, (iii) providing employment beyond the target, and (iv) employing women and persons with disabilities.1  As of December 2025, 246 units have been established under this scheme, employing over 53,000 persons.[41] 

Software Technology Parks of India (STPI)

STPI is an autonomous society under MeITY, with the objective of promoting software exports from India.1  It provides services such as high-speed data communication, incubation services, information security audits, project management, etc.1  Between 1991 and 2025, STPI set up 68 software technology parks.[42]  Of these, 60 are in Tier 2/Tier 3 cities.  In 2024-25, exports worth more than ten lakh crore rupees were made from STPI-registered units.42  This is estimated to account for 50% of national software exports.42  STPI has also established 24 centres of entrepreneurship and technology incubators.42  These focus on technologies like Internet of Things, blockchain, animation, robotics, etc.

Artificial Intelligence (AI)

While there is no standard definition of AI, it broadly refers to the ability of machines to perform tasks that typically require human intelligence.[43],[44]  AI has applications across sectors, including healthcare, education, agriculture, manufacturing, banking, and governance.44  It is also being rapidly adopted by organisations across sectors.  A survey cited by the Economic Survey noted that globally, about 88% of surveyed organisations reported AI usage in business functions.39  In India, almost 90% of start-ups launched in 2024-25 used AI in their products or services.44  While AI deployment is concentrated in high-income countries, its use in middle-income countries has also expanded.39  This is driven by innovation and continuous improvement in AI capabilities.39

Figure 11: AI infrastructure architecture

Source: Economic Survey 2025-26; PIB; PRS.

The Economic Survey (2025-26) and NITI Aayog have highlighted several AI applications built in India.39,[45]  These have been deployed in agriculture, education, healthcare, urban development, wastewater management, and other sectors.  While a few models have been recently developed, there are no Indian foundational models which are globally recognised and widely deployed.  Further, compute capacity and private participation in foundational AI research is also limited in India.39  Key challenges for the development of AI in India are: (i) availability of quality datasets and computing infrastructure, (ii) insufficient research in foundational technologies, (iii) skilled talent gap, and (iv) vague regulations on privacy, security, and IPR.[46]

AI is a strategic asset

AI applications rest on a base of foundational models and computation capacity (see Figure 11).44  It has been noted that AI applications can be widely adopted with relative ease.39  However, developing and training foundational models require increasingly more capital, infrastructure, data, and energy.39  This causes advanced AI development to be concentrated in a few firms.39

AI is increasingly seen as a geostrategic asset.39  Restrictions on technology transfer and export controls on advanced chips are already in place.  Overdependence on foreign systems to build AI applications can create systemic risks.39    

Open models can be transparent and cost-effective

The AI models that are deployed most widely are proprietary.39  This means that the data, logic, and other mechanisms used to develop them are confidential and opaque.  Users may not know the changes being made to the source code, which may cause the model’s behaviour to change.39 

Open source models, where the source code is publicly available, allow better adaptability.39  They have lower entry barriers, and fewer restrictions placed by vendors.39  Previously, open models presented issues related to accuracy and quality control.39  However, the performance gap between proprietary and open models has narrowed.39  Further, India has one of the largest communities of open-source software developers.39  The Economic Survey 2025-26 noted that open-source models and platforms could lower barriers for domestic developers and allow experimentation at lower costs.39

Increasing compute capacity could be expensive

Adequate compute capacity is required to develop and train AI models.39  This requires graphics processing units (GPUs), memory chips, and other hardware.  AI development has rapidly increased the demand for GPUs.39  However, supply has not matched the demand.  This is due to shortages in inputs, like semi-conductors and high-bandwidth memory chips, and supply capture by foreign buyers.39  As a result, prices of these components have increased significantly.39,[47]

Impact of AI on labour markets

The Economic Survey 2024-25 observed that the cost-saving potential of AI could negatively impact the labour market, especially entry-level jobs.[48]  It also raised the possibility of AI worsening existing socio-economic divisions.48 

Later surveys have suggested that AI’s impact on labour may be less drastic.39  AI adoption improves the productivity of labour, especially in service sectors.  This could lead to firms substituting labour for capital (i.e. AI-enabled services) in some tasks, mostly in low-value-added segments.39  Rapid deployment of AI could boost productivity, but displace the workforce.39  However, delays in AI adoption could keep productivity low.

Skilling for AI

The National Strategy for AI (2018) noted that inadequate availability of AI expertise was a key challenge for India.46  It highlighted estimates which suggest that about 80% of engineering graduates are unemployable.46  Lack of specialised faculty, rigid curricula, and low levels of interdisciplinary research have been identified as reasons for this.  It recommended a two-pronged approach to reskilling, focusing on students and the workforce.46 

For students, the Strategy recommended: (i) skill-based learning in computer-based subjects in primary and secondary school, (ii) increased industry-academia collaboration in higher education, and (iii) decentralised teaching mechanisms like certifications.46  However, the Economic Survey 2025-26 also noted that employers emphasised foundational skills over technical skills.39  These include literacy, numeracy, reasoning, problem-solving, communication, and socio-emotional skills.39

For reskilling of the workforce, the National Strategy recommended: (i) recognising and standardising informal training institutions, (ii) creating open learning platforms, and (iii) providing financial incentives to employers for reskilling employees.46

Cybersecurity

Cyberspace is virtual, borderless, and completely anonymous.1  Enhanced adoption of emerging technologies is increasing the size and complexity of cyberspace.  As a result, the frequency and diversity of cyberattacks are also increasing.1 

Figure 12: Security incidents handled by CERT-In have increased rapidly after 2017

Source: CERT-In; PIB; PRS.

Fragmented legislative and governance framework

In India, cybersecurity is governed by several policies and Acts, implemented by a variety of agencies and entities (see Figure 13).  Additionally, state governments also play a role in preventing and mitigating cybercrimes.

Figure 13: The responsibility for governing and monitoring cyberspace is shared between various entities in India

Source: Websites and Annual Reports of various Ministries; PIB; PRS.

Within this landscape, MeITY implements two central legislations, the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023.1  It has also established the Indian Computer Emergency Response Team (CERT-In) for cyber incident response under the IT Act.1  The Standing Committee on Home Affairs (2025) observed that there were multiple statues dealing with cybercrime in India.[49]  This created enforcement and judicial challenges.  It recommended creating a single cybercrime legislation, which would also address emerging technologies.49  In particular, it also  recommended reviewing the IT Act, 2000, and introducing changes to penalties and investigation procedures in cybercrime cases.49 

MeITY released the National Cyber Security Policy in 2013.1  Key strategies in the policy include: (i) designating a national nodal agency to coordinate all cybersecurity matters, (ii) encouraging all organisations to develop cybersecurity plans, (iii) encouraging the use of open standards for interoperability and data exchange, and (iv) developing a dynamic legal framework with period review to address cybersecurity challenges.[50]

Given recent developments in cyberspace and cyber threats, the Union government formulated the draft National Cyber Security Strategy.1  It is expected to enhance the implementation of the 2013 Policy.  The Strategy had not received approval as of 2025.1

CERT-In

The Indian Computer Emergency Response Team (CERT-In) is the national agency for cyber incident response in India.[51]  Its responsibilities include the prevention of cyberattacks, real-time cyber threat monitoring, and coordination between stakeholders to mitigate cyber incidents.51  It also issues guidelines, advisories, vulnerability notes, and white papers related to information security practices, and creates cybersecurity awareness.1

See Table 16 in the Annexure for a list of CERT-In’s achievements in 2025.

e-Governance

Over the last few decades, governance has become increasingly complex and varied.[52]  Citizens’ expectations from government have also increased.  E-Governance, which utilises technology to carry out governance functions, is expected to speed up governmental processes.52  It could also increase transparency, enforce accountability, and help take judicious decisions.52  Providing assistance to government departments in promoting e-governance is one of MeITY’s primary functions.1 

National Informatics Centre (NIC)

NIC is the Government of India’s technology partner.  It develops IT systems for central and state governments, provides ICT infrastructure to governments, and provides advise on the use of emerging technologies.  It has centres in 36 states/Union Territories, and 758 districts.[53]  NIC also provides digital platforms for tracking and monitoring government schemes, financial management, and increasing transparency.[54]

Slow increase in expenditure on NIC          

Expenditure on NIC has been between Rs 1,300 crore and Rs 1,400 crore since 2020-21.  The budget allocation towards NIC has increased at an annual rate of 6% between 2019-20 and 2025-26.  However, actual expenditure has grown at a rate of around 3% (considering revised estimates for 2025-26).  In 2024-25, the budget allocation reached a high of Rs 1,749 crore.  However, expenditure was still capped at around Rs 1,400 crore.  The allocation was reduced in 2025-26 and 2026-27.  The Standing Committee on Communications and IT requested the Ministry to ensure that decreased allocation towards NIC did not affect its mandates or targets.[55]

Figure 14: Slow increase in spending by NIC

Note: Revised estimate taken as actual for 2025-26.
Source: Budget documents of various years; PRS.

Prolonged vacancies in NIC

The Standing Committee on Communications and Information Technology (2023) had noted the prolonged existence of vacancies in the NIC.[56]  It observed that as of March 2022, 20% of sanctioned posts were vacant.56  The creation of 1,392 posts initiated in 2014 was still pending as of 2023.56  It recommended that the recruitment process be expedited, given that NIC provides critical IT infrastructure to the country.56

National Knowledge Network

The National Knowledge Network (NKN) is a secured network providing high-speed connectivity to educational institutes, research bodies, and government organisations across India.1  It was to be implemented with a total outlay of Rs 5,990 crore, which has been extended to Rs 7,188 crore.1,[57]  The duration of NKN has also been extended multiple times, till March 2026.1,57  As of July 2025, links to 1,817 institutions were operational under NKN.  It has also linked to global research and education networks in Singapore, South Africa, the USA, and Nordic countries.[58]  NKN has also been extended to Bangladesh, Bhutan, Maldives, and Sri Lanka.58  NKN has been allocated Rs 665 crore in 2026-27, with an equivalent expenditure estimated on the scheme in 2025-26.    

A CAG audit of the NKN scheme found several issues related to project and financial management.  There was no clear roadmap to help institutions sustain their connection with NKN beyond the project period.[59]  As of March 2023, only 64% of connected institutions had signed Memoranda of Understanding with the implementing agency.59  This absolved the institution from binding responsibilities to use and maintain the infrastructure safely.59

The CAG (2025) also noted wasteful and excess expenditure on the project due to: (i) incorrect rates being applied for service fees, (ii) delays in decommissioning links, and (iii) imprudent contract management.59  It recommended developing a portal to track and optimise usage and costs under the scheme.59                 

Digital India - eGovernance

The Digital India Mission was launched in 2015, with the overall aim of improving the lives of citizens using digital technologies.[60]  It has three broad goals: (i) strengthening digital infrastructure, (ii) digital delivery of government services, and (iii) improving digital literacy.60  This mission serves as an umbrella scheme, covering several projects implemented at the central and state/UT levels.[61]  It has been allocated Rs 14,903 crore for the period from 2021-22 to 2025-26.1  See Table 13 for some projects implemented under this Mission.  Actual expenditure on e-governance components of Digital India exceeded the budget allocation in 2023-24 and 2024-25 (see Figure 15). 

Figure 15: Fund utilisation under Digital India

Note: Revised estimate taken as actuals for 2025-26.
Source: Budget documents; PRS.

The Ministry has cited several issues in implementing e-governance initiatives.  These include: (i) poor digital literacy, (ii) lack of insufficient digital connectivity, (iii) lack of access to, and ease in accessing services, and (iv) low readiness among government departments in adopting digital services.55  

PMGDISHA - 50% of registered candidates trained

The PM Gramin Digital Saksharta Abhiyan (PMGDISHA) was launched in 2017 to increase digital literacy in rural areas.[62]  Under the scheme, candidates were trained to operate digital access devices (computers, smart phones, or tablets), use email services, browse the internet, access government services, make digital payments, etc.62  At the scheme’s conclusion in March 2024, 6.39 crore individuals had been trained, against a six crore target.[63]  However, this accounts for only 87% of candidates who registered for training.63  Of the 7.35 crore candidates who registered, 55% were women, of whom 89% received training.63

Common Service Centre coverage low in some states

Common Service Centres aim to offer government and business services digitally across India.[64]  This scheme was launched in 2006, with the aim of covering six lakh census villages in India, with one lakh CSCs.  As of December 2025, there are more than 4.5 lakh CSCs in rural areas, and 1.29 lakh CSCs in urban areas.  Across India, 95% gram panchayats have at least one functional CSC.

Figure 16: Some north-eastern and hilly states lag in implementing CSCs

Note: No data for Delhi and Chandigarh as these Union Territories do not have rural areas.
Source: MeITY; PRS.

Annexure

Table 12: Projects approved under the Semicon India Programme

Organisation

Project Type

Location

Technology Partner

Investment

(in crore)

Capacity (in million units per year)

Micron Semiconductor Technology

ATMP

Sanand, Gujarat

In-house (USA)

22,516

1,352

Tata Semiconductor Manufacturing

Semiconductor Fab

Dholera, Gujarat

PSMC (Taiwan)

91,526

50,000 wafer starts per month

Tata Semiconductor Assembly and Test

OSAT

Morigaon, Assam

In House (India)

27,120

15,600

CG Power and Industrial Solutions

OSAT

Sanand, Gujarat

Renesas (Japan), and Stars Microelectronics (Thailand)

7,584

4,044

Kaynes Semicon

ATMP Project

Sanand, Gujarat

Globetronics, Malaysia & AOI (Japan)

3,307

2,310

India Chip (HCL-Foxconn JV)

OSAT

Yeida, Uttar Pradesh

Hon Hai Technology (Foxconn) (Taiwan)

3,706

432

Advanced System in Package Technologies

OSAT

Andhra Pradesh

APACT (South Korea)

469

96

SICSEM

Compound fab and ATMP

Bhubaneswar, Odisha

Clas-SiC (UK) & CDIL (India)

2,067

96

3D Glass

Advance Packaging

Bhubaneswar, Odisha

In-house (USA)

1,944

120

Continental Device India

OSAT

Mohali, Punjab

In-house (India)

118

158

Source: India Semiconductor Mission; PRS.

Table 13: Selected schemes under Digital India Mission

Goal

Scheme

Description

Digital Infrastructure

Unified Payments Interface

Platform for digital financial transactions.

Government e-Marketplace

Platform to enable online procurement of goods and services required by government departments/organisations.

National Knowledge Network

High-speed communication network that connects educational institutions, and carries the digital traffic of various government services.

Bharat Net

Provides broadband services to villages

e-Governance

Aadhaar

Provides a unique digital identity linked to biometrics to every individual.

DigiLocker

Platform to store authenticated digital versions of important documents.

Common Service Centres

Provide government and business services in rural areas

Direct Benefit Transfer

Technology that uses Aadhaar to deliver welfare payments directly to beneficiaries

National Scholarship Portal

Uses DBT to disburse scholarship funds

e-Transport Mission Mode Project

Centralised digital platform linking applications such as VAHAN, Sarathi, and e-Challan

e-Sanjeevani

Provides tele-medicine services

Literacy and Skilling

PM Gramin Digital Saksharata Abhiyan

Provides training to improve digital literacy to one member of every rural households

FutureSkills PRIME

Reskilling/upskilling of workforce in emerging technologies

National Institute of Electronics and Information Technology

Provides digital literacy training

Source: Starred Question No. 71, Rajya Sabha, December 5, 2025; PRS.

 

Table 14: Projects approved under EMC 2.0 Scheme

State

Type

Location

Area (in acres)

Project Cost (in Rs crore)

Andhra Pradesh

EMC

Kopparthy Kadapa, YSR District

540

749

Haryana

EMC

IMT Sohna, Nuh District

500

662

Tamil Nadu

EMC

Manallur, Tiruvalluvar District

474

587

Gujarat

EMC

TP 2A, Activation Area, Dholera SIR

1027

574

Telangana

EMC

Divtipally Village, Mahabubnagar

378

570

Maharashtra

EMC

Ranjangaon, Pune

297

493

Tamil Nadu

EMC

Pillaipakkam, Sriperumbudur, Kancheepuram

379

425

Uttar Pradesh

EMC

Sector 10, Gautam Buddha Nagar

206

417

Karnataka

EMC

Kochanahalli Village, Mysuru

236

222

Karnataka

EMC

Kotur-Belur Industrial Area, Dharwad

225

179

Uttarakhand

EMC

Kashipur Integrated Industrial Estate, Udham Singh Nagar District

134

136

Chhattisgarh

CFC

Sector 22, Naya Raipur

3

108

Telangana

CFC

Knowledge City, Raidurg Village, Ranga Reddy District

1

105

Source: Unstarred Question No. 2788, Lok Sabha, December 17, 2025; PRS.

Table 15: India's presence in electronic value chain by product segment

Product Segment

Design

Component Manufacturing

Assembly

Mobile Phones

Minimal to low

Production of mechanical components and composites, such as phone casings, cables, etc.

India is the world’s second largest mobile assembler.  Sub-components, like battery packs, chargers, camera modules also localised

Consumer Electronics

Some design capabilities through OEMs like Blue Star and Godrej for air conditioners (ACs) and refrigerators

Manufacturing of electro-mechanical and through-hole components for ACs and refrigerators.

Finished products and sub-components (like TV displays) assembled by OEMs and other companies (eg. Samsung, Dixon) 

IT Hardware

Minimal

Primarily imported

Limited presence

Telecom

Minimal, some efforts ongoing

Primarily imported

Limited presence.  Most imports from China

Automobiles

Product design and engineering capabilities established through OEMs like Tata Motors, Mahindra & Mahindra.  Limited capabilities in electronics 

Manufacturing of low-tech components like wire harness and connectors

Limited presence

Hearables/ Wearables

Minimal to low

Primarily imported

Limited presence

Source: Electronics: Powering India’s Participation in Global Value Chains, NITI Aayog; Economic Survey 2025-26; PRS.

Table 16: CERT-In achievements in 2025

Area of Work

Achievement(s) in 2025

Cyber Incident Response

  • Over 29 lakh cyber incidents handled

Threat Intelligence

  • More than 1,500 alerts, 390 vulnerability notes, and 65 advisories published.

Cybersecurity Audit

  • Empanelled 231 certified security audit organisations, largely in financial, power, and transport sectors

Capacity Building

  • More than 20,000 officers trained across government, public sector undertakings, and industry
  • 32 specialised technical training programmes held

Cybersecurity Preparedness

  • 122 cybersecurity drills conducted with participation from about 1,500 organisations

Awareness Initiatives

  • Conducted 95 awareness sessions covering more than 91,000 participants

Source: PIB; PRS.

 


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[2] Powering the Future: The Semiconductor and AI Revolution, Press Information Bureau, August 15, 2025, https://www.pib.gov.in/FactsheetDetails.aspx?Id=149242&reg=3&lang=2.

[3] About ISM, India Semiconductor Mission, accessed on January 28,2026, https://ism.gov.in/about-ism.

[4] Notification No. EE-9/5/2021-R&D-E., Design Linked Incentive (DLI) Scheme, Ministry of Electronics and Information Technology, Gazette of India, December 21, 2021, https://d2p5j06zete1i7.cloudfront.net/Cms/2022/May/05/1651757254_notification_dli.pdf.

[5] Unstarred Question No. 269, Rajya Sabha, MeITY, December 12, 2025, https://sansad.in/getFile/annex/269/AU1497_02pC5k.pdf?source=pqars.

[6] Report No. 17: Action Taken by the Government on the Observations/Recommendations of the Committee contained in their Ninth Report (Eighteenth Lok Sabha) on ‘Demands for Grants (2025-26)', Standing Committee on Communications and Information Technology, August 19, 2025, https://sansad.in/getFile/lsscommittee/Communications%20and%20Information%20Technology/18_Communications_and_Information_Technology_17.pdf?source=loksabhadocs.

[7] Union Budget 2026-27, February 1, 2026, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf.

[8] ‘India Semiconductor Mission 2.0’, Press Information Bureau, PIB Headquarters, February 7, 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224839&reg=3&lang=1.

[9] Introduction, Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Ministry of Electronics and Information Technology, accessed on January 27, 2026, https://www.meity.gov.in/offerings/schemes-and-services/details/production-linked-incentive-scheme-pli-for-large-scale-electronics-manufacturing-gNyMDOtQWa.

[10] Introduction, Production Linked Incentive Scheme (PLI) for IT Hardware, Ministry of Electronics and Information Technology, accessed on January 27, 2026, https://www.meity.gov.in/offerings/schemes-and-services/details/production-linked-incentive-scheme-pli-for-it-hardware-QjNyETMtQWa.

[11] Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Gazette of India, April 1, 2020, https://www.meity.gov.in/static/uploads/2024/02/854bea0fa5bf3c3eca352e4968ac1a72.pdf.

[12] File No. W-18/28/2020-IPHW-Part (1)-MeitY, Guidelines for the Operation of Production Linked Incentive Scheme (PLI) for IT Hardware, Ministry of Electronics and Information Technology, April 15, 2021, https://www.meity.gov.in/static/uploads/2026/01/6cd916e208315e98cfbbe9006aabb4a7.pdf.

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[15] Unstarred Question No. 2464, Rajya Sabha, MeITY, March 21, 2025, https://sansad.in/getFile/annex/267/AU2464_RQYyiH.pdf?source=pqars.

[16] Unstarred Question No. 2788, Lok Sabha, MeITY, December 17, 2025, https://sansad.in/getFile/loksabhaquestions/annex/186/AU2788_ycuQgX.pdf?source=pqals.

[17] Electronics Development Fund, Press Information Bureau, PIB Headquarters, November 15, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2190256&reg=3&lang=2.

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[19] ‘Transforming India with AI’, Press Information Bureau, December 30, 2025, https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=156786&ModuleId=3&reg=3&lang=2.

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[25] Electronics: Powering India’s Participation in Global Value Chains, NITI Aayog, July 2024, https://www.niti.gov.in/sites/default/files/2024-07/GVC%20Report_Updated_Final_11zon_0.pdf.

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[29] Chapter 8: Industry’s Next Leap: Structural Transformation and Global Integration, Economic Survey 2025-26, January 29, 2026, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/echap08.pdf.

[30] Unstarred Question No. 2628, Rajya Sabha, MeITY, March 18, 2021, https://sansad.in/getFile/annex/253/AU2628.pdf?source=pqars.

[31] Notification, Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS), MeITY, IPHW Division, Gazette of India, April 1, 2020, https://www.meity.gov.in/static/uploads/2024/02/scheme_for_promotion_of_manufacturing_of_electronic_components_and_semiconductors.pdf

[32] Trade Watch Quarterly, July-Sept 2025 (Q2 FY 2025-26), NITI Aayog, February 2026, https://niti.gov.in/sites/default/files/2026-02/Trade-Watch-Quarterly-July-September-Q2-FY-2025-26.pdf.

[33] ‘India Semiconductor Mission 2.0’, Press Information Bureau, PIB Headquarters, February 7, 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224839&reg=3&lang=1.

[34] Chapter 7: Services: From Stability to New Frontiers, Economic Survey 2025-26, January 29, 2026, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/echap07.pdf.

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