Component PLI to Enhance India's Ambitious $500 Billion Electronics Manufacturing Vision: Industry Leaders
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Synopsis
India aims to achieve $500 billion in electronics manufacturing by 2030, with the Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS) initiating a transformative growth phase, boosting employment and investment in the sector.
Key Takeaways
- ECMS aims for $500 billion in electronics by 2030.
- Investment of Rs 59,350 crore expected.
- Projected production of Rs 4,56,500 crore.
- Direct jobs estimated at 91,600.
- Domestic electronics market to reach $400 billion.
New Delhi, March 28 (NationPress) As India aims to achieve $500 billion in electronics manufacturing by 2030, the Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS) is set to initiate a transformative phase of growth, according to industry leaders on Friday.
The Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned the electronics component manufacturing scheme with a budget of Rs 22,919 crore.
This initiative aims to draw in an investment of Rs 59,350 crore, resulting in a production value of Rs 4,56,500 crore and creating approximately 91,600 direct jobs along with numerous indirect employment opportunities throughout its duration.
“We are sincerely thankful to the Ministry of Electronics and IT (MeitY) for their outstanding leadership in establishing a remarkable scheme that will generate jobs, enhance MSME involvement, and boost value addition in the electronics domain,” stated Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA).
India has experienced phenomenal expansion in the mobile and electronics sectors, with domestic production soaring by 400 percent to an estimated $135-140 billion over the last decade since FY15.
“The ECMS will now stimulate the industry to deepen integration with Global Value Chains (GVCs), establish substantial manufacturing facilities, and facilitate considerable job creation,” Mohindroo further noted.
According to an IESA report, India's electronics market, encompassing domestic manufacturing and exports, is projected to expand to $400 billion by 2030.
“The Component PLI is set to expedite the ‘Make in India’ initiative, fostering increased value addition and fortifying the domestic supply chain while reducing imports. In conjunction with the ramp-up of semiconductor manufacturing and the existing PLI for electronics, these initiatives will boost India's competitiveness on the global stage,” remarked Ashok Chandak, President of IESA.
Dr. Ajai Chowdhry, Founder of HCL and Chairman of the EPIC Foundation, noted that this will facilitate significantly higher value addition within the country for electronics manufacturing and attract more investments in system products, enabling just-in-time production through local availability.
“Additionally, this scheme features an appealing employment-linked incentive program alongside PLI and Capex benefits, which will further encourage job growth, enhance workforce competitiveness, and stimulate economic development,” he added.
