Parliamentary Panel Criticizes IT Ministry Over Semiconductor Fund Utilization
The Indian Ministry of Electronics and Information Technology (MeitY) has come under fire from a parliamentary panel for failing to effectively utilize allocated funds for the semiconductor sector. The panel expressed dissatisfaction with the ministry’s inability to leverage resources earmarked for advancing India’s semiconductor manufacturing and technology ecosystem.
Concerns Raised Over Inadequate Fund Usage
The parliamentary panel pointed out significant delays and underperformance in deploying the semiconductor funds, which were intended to bolster India’s semiconductor capabilities. These funds were critical to reducing dependency on imports and achieving self-sufficiency in semiconductor manufacturing.
The panel observed that despite the global semiconductor supply chain disruptions presenting an urgent need for local manufacturing, progress under the ministry’s initiatives has been negligible. The report highlighted missed deadlines and insufficient outreach to potential private-sector collaborators as key issues hindering the program’s success.
India’s Semiconductor Ambitions
India’s semiconductor initiative was launched with great enthusiasm, aiming to establish the country as a global hub for chip manufacturing. With substantial allocations under the Semiconductor Mission, the government sought to attract investments, incentivize manufacturing units, and enhance research capabilities in the field.
However, the parliamentary panel noted that the ministry’s poor execution has left these ambitious goals unfulfilled. A lack of focus on skill development and training programs to prepare a workforce for this high-tech industry was also highlighted as a gap in the strategy.
Recommendations for the Way Forward
The panel urged the IT Ministry to adopt a more proactive approach in utilizing the allocated funds. It emphasized the need for setting clear targets, engaging with global semiconductor players, and fostering public-private partnerships to expedite progress.
Additionally, the report recommended transparency in fund usage and the establishment of periodic review mechanisms to ensure accountability. It also called for the creation of robust training programs to address the skills gap in the semiconductor sector.
Importance of the Semiconductor Mission
India’s semiconductor ambitions are pivotal for the country’s technology sector and its standing in the global market. As nations worldwide prioritize domestic chip production, experts stress that India must act swiftly to avoid falling behind in this critical domain.
The parliamentary panel’s criticism serves as a wake-up call for the IT Ministry to address inefficiencies and ensure the allocated resources are fully leveraged to achieve the country’s technological aspirations.
