The Union Cabinet has approved the Electronics Component Manufacturing Scheme, allocating ₹22,919 crore in funding to enhance India’s self-reliance in the electronics supply chain. This initiative aims to attract investments, increase domestic value addition, and integrate Indian companies into global value chains.

Key Objectives

• Self-Reliance: Reduce dependence on imports and establish a robust domestic electronics ecosystem.
• Investment Promotion: Attract both domestic and global investments to scale up production.
• Job Creation: Generate direct and indirect employment opportunities.
• Global Integration: Strengthen India’s position in global value chains.

Investment and Production Targets

Parameter	Targeted Value
Expected Investments	₹59,350 crore
Projected Production	₹4,56,500 crore
Direct Jobs Created	91,600
Indirect Job Creation	Significant

Incentive Structure

The scheme provides differentiated incentives tailored for various categories of electronics components:

Category	Incentive Type
Sub-Assemblies	Turnover-linked incentives for display and camera modules
Bare Components	Turnover-linked incentives for non-SMD passive components, electro-mechanical components, PCBs, and Li-ion cells
Selected Components	Hybrid incentives for HDI, MSAP, flexible PCBs, and SMD passive components
Supply Chain Ecosystem	CapEx incentives for production of parts, components, and capital goods used in electronics manufacturing

Implementation Timeline

The scheme will be implemented over six years, with an initial one-year gestation period for setting up infrastructure and processes.

Employment-Linked Payouts

Some incentives will be linked to employment generation, ensuring that the initiative contributes to India’s growing workforce in the electronics sector.

Conclusion

This initiative highlights India’s commitment to strengthening its electronics manufacturing industry. By fostering investments, technology acquisition, and domestic production, the scheme is expected to significantly boost economic growth, reduce import dependence, and position India as a global electronics manufacturing hub.