The Union Cabinet, led by Prime Minister Narendra Modi, approved a ₹22,919 crore scheme to boost electronics component manufacturing. The scheme aims to make India self-reliant in the electronics supply chain.
It targets ₹59,350 crore in investments and ₹4,56,500 crore in production. It will create 91,600 direct jobs and many indirect employment opportunities.
The scheme focuses on building a strong component ecosystem. It aims to attract large investments, increase domestic value addition, and integrate Indian companies into global value chains.
The scheme will run for six years, with a one-year gestation period. The government will link part of the incentive payout to employment targets.
Indian manufacturers will receive tailored incentives to overcome industry challenges. This will help them acquire advanced technology and achieve economies of scale.
India’s domestic electronics production grew from ₹1.90 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, rising at over 17% CAGR.
Electronics exports jumped from ₹0.38 lakh crore to ₹2.41 lakh crore in the same period, growing at over 20% CAGR.
The India Electronics and Semiconductor Association (IESA) welcomed the approval of the production-linked incentive (PLI) scheme. The association expects India’s electronics manufacturing and exports to reach $400 billion by 2030.
“The Component PLI will drive ‘Make in India,’ boost value addition, and strengthen the domestic supply chain while reducing imports. Along with semiconductor manufacturing and the existing PLI, this will enhance India’s global competitiveness,” said Ashok Chandak, President, IESA.
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