India's Union Budget has received strong endorsement from IT and Railways Minister Ashwini Vaishnaw, who highlighted its potential to propel the semiconductor sector forward and stimulate substantial investments in data centres.

In an exclusive interview with NDTV's CEO and Editor-in-Chief Rahul Kanwal, Vaishnaw praised Finance Minister Nirmala Sitharaman's announcements as a pivotal step for these high-growth industries.

The minister emphasised that the Budget marks a progression for India's semiconductor ambitions through the launch of Semiconductor Mission 2.0. This initiative builds on the foundational efforts of the first mission, which successfully attracted the ecosystem and kick-started domestic manufacturing.

Vaishnaw explained that the new phase shifts focus towards bolstering the supply chain for semiconductor equipment and materials. It aims to fortify startups, targeting at least 50 deep-tech ventures to emerge as part of this drive.

India's burgeoning talent pipeline, nurtured across 315 universities, forms a cornerstone of this strategy. The minister noted that this skilled workforce, combined with sustained policy support, positions the country to scale up rapidly.

A key Budget measure includes a tax holiday until 2047 for foreign companies offering global cloud services via Indian data centres. Vaishnaw described AI data centres as the foundational infrastructure layer in the artificial intelligence ecosystem, enabling service providers to innovate atop it.

Investment momentum is already impressive, with $70 billion committed and $90 billion announced thus far. Vaishnaw projected that the Budget could push total inflows beyond $200 billion, drawing on India's reliable talent pool and stable policy environment.

The pivot by India's IT industry towards AI services represents a significant advantage for data centre infrastructure providers. This shift is generating multiplier effects across related sectors.

Vaishnaw pointed to rising interest in local manufacturing of AI servers, data centre components, and even AI chips. These developments signal a maturing ecosystem poised for self-reliance and export potential.

Addressing external commentary, the minister responded to US President Donald Trump's remarks on India's oil procurement choices. He reaffirmed that all policy decisions remain firmly under the Centre's purview, dismissing opposition claims of announcements being made abroad.

Vaishnaw underscored India's rising global stature as a trusted partner. Recent successes in electronics manufacturing are now extending to semiconductors, with international giants keen to collaborate.

In a notable diplomatic push, the minister recounted his recent visit to ASML in the Netherlands—a critical supplier to semiconductor manufacturers that has historically avoided overseas expansion. He urged them to consider India as a manufacturing hub.

ASML's response was swift: within a short timeframe, they are dispatching a full delegation to explore opportunities in India. This engagement exemplifies the confidence that global leaders are placing in the country's capabilities.

Vaishnaw's insights portray the Budget as a catalyst for transformative growth in semiconductors and AI infrastructure. By nurturing talent, incentivising investments, and forging international ties, India is cementing its role in the global technology landscape.

Based On NDTV Report