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India's renewable energy and semiconductor sectors are poised for rapid advancement, driven by recent government initiatives, according to the Reserve Bank of India's annual report released Thursday.

The interim Union Budget for 2024–25 allocates ₹6,903 crore for semiconductor and display fabs, aiming to establish India as a global hub for chip and electronics manufacturing, the report states.

The production-linked incentive (PLI) scheme is expected to attract increased investments, create new employment opportunities, boost labour incomes, and strengthen domestic demand. Consequently, real GDP growth for 2024–25 is projected at 7.0%, the report notes.

The Anusandhan National Research Foundation Bill, 2023, paves the way for the Anusandhan National Research Foundation (NRF), set to enhance research and innovation in basic science, healthcare, and the humanities.

Additionally, the National Quantum Mission (NQM), approved with a budget of around ₹6,000 crore from 2023–24 to 2030–31, will bolster R&D and the innovative ecosystem in quantum technology. This mission aligns with national initiatives like Digital India, Make in India, and the Sustainable Development Goals (SDGs).

These initiatives, combined with government investment in infrastructure and the increasing adoption of digital technologies, are expected to enhance productivity and potential growth in the medium term, the report concludes.