Budget 2024: A Boost to India’s Semiconductor and AI Industries
The Union Budget presented by Finance Minister Nirmala Sitharaman has been praised by IT and Railways Minister Ashwini Vaishnaw for its potential to take India’s semiconductor industry to the next level and boost investment in data centres.
Speaking exclusively to NDTV, the minister said that India’s IT industry has successfully pivoted to providing AI services, which will be a significant advantage for data centre infrastructure providers.
Semiconductor Mission 2.0
Vaishnaw explained that the Semiconductor Mission 2.0 is aimed at making the ecosystem stronger, with a focus on the equipment and materials used for manufacturing semiconductors, as well as supporting startups in the industry.
The minister announced that the government aims to have at least 50 deep-tech startups as part of the second mission, and will continue to develop the talent pipeline in 315 universities.
Investment in Data Centres
The Budget proposed a tax holiday until 2047 for foreign companies that provide cloud services to customers globally using data centre services from India.
Vaishnaw said that AI data centres are the infrastructure layer of the artificial intelligence stack, and service providers can build on it.
He emphasized that the investment in data centres could exceed $200 billion, driven by India’s talent pipeline and stable policy regime.
Multiplier Impacts
The minister highlighted the multiplier impacts of the growth in the IT industry, including the potential for manufacturing AI servers and components in India, as well as the development of AI chips.
Vaishnaw also mentioned that the government is in talks with key suppliers to semiconductor manufacturers, such as ASML, to explore opportunities for manufacturing in India.
Conclusion
In conclusion, the Union Budget 2024 has the potential to significantly boost India’s semiconductor industry and AI services, attracting significant investments in data centres and driving growth in the IT industry.
As the Indian economy continues to grow, it is essential for investors to stay informed about the latest developments and trends in the industry, and to explore opportunities for investment in Indian stocks and mutual funds.
