Electronics Component Manufacturing Scheme

1. In March 2025, The Union Cabinet, led by Prime Minister Narendra Modi, approved the Electronics Component Manufacturing Scheme with Rs. 22,919 crore funding.
2. Purpose: To make India self-reliant (Atmanirbhar) in the electronics supply chain.
    

Scheme Goals:

1. Investment Attraction: The scheme aims to attract Rs. 59,350 crore in investment.
2. Production Target: It will help produce Rs. 4,56,500 crore worth of products.
3. Employment Generation: The scheme will create 91,600 direct jobs, and many more indirect jobs.
    

Objectives:

1. Build Ecosystem: Create a strong electronics manufacturing ecosystem by attracting both local and global investments.
2. Increase Local Manufacturing: Improve the capacity and skills of Indian companies and help them connect with global supply chains.
    

Key Features:

1. Different incentives will be given to manufacturers to help them overcome challenges in making components and parts.

2. These incentives will help them develop new technology and grow their businesses.

3. Target Areas & Incentives:

1. 1. Sub-Assemblies:
      • Display and camera module parts: Incentives based on production.
   2. Bare Components:
      • Parts like passive components, mechanical parts, multi-layer PCBs, Li-ion batteries, and enclosures for mobile/IT products: Incentives based on production.
   3. Special Bare Components:
      • High-density interconnects (HDI), flexible PCBs, SMD components: Mixed incentives.
   4. Supply Chain & Capital Equipment:
      • Incentives for parts used in making sub-assemblies and machines used in manufacturing: Investment incentives.

4. Scheme Duration:

1. The scheme will last for 6 years, with a 1-year preparation period before full implementation.

5. Employment Milestones:

1. 1. Some of the incentives will be tied to creating new jobs.
       

Background Context:

1. Global Electronics Industry: Electronics is a rapidly growing industry and is important for economic growth and technology development.
2. India’s Electronics Growth:
3. 1. Domestic Production: India’s production of electronics grew from Rs. 1.90 lakh crore in FY 2014-15 to Rs. 9.52 lakh crore in FY 2023-24 (a growth rate of over 17% per year).
   2. Exports: India’s electronics exports grew from Rs. 0.38 lakh crore in FY 2014-15 to Rs. 2.41 lakh crore in FY 2023-24 (a growth rate of over 20% per year).
       

Conclusion: This scheme will help grow India's electronics manufacturing sector by attracting big investments, increasing production, and creating many jobs. It supports India’s goal of becoming self-reliant in electronics and connecting local companies to global markets.

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