Synopsis
The Union Cabinet, under Prime Minister Modi's leadership, has approved a Rs 22,919 crore electronics component manufacturing scheme aimed at boosting India's self-reliance in the electronics sector, attracting significant investments, and generating extensive employment opportunities.Key Takeaways
- Investment of Rs 59,350 crore targeted.
- Expected production of Rs 4,56,500 crore.
- Creation of 91,600 direct jobs.
- Scheme duration is six years with incentives tied to employment.
- Domestic electronics production rose significantly.
- Exports of electronic goods also saw substantial growth.
New Delhi, March 28 (NationPress) In a bid to achieve Atmanirbhar Bharat in the electronics supply chain, the Union Cabinet, led by Prime Minister Narendra Modi, has approved a significant electronics component manufacturing initiative with a budget of Rs 22,919 crore.
This initiative is expected to draw in investments totaling Rs 59,350 crore, leading to a production output of Rs 4,56,500 crore and creating approximately 91,600 direct jobs, along with numerous indirect employment opportunities throughout its duration.
The primary goal of this scheme is to cultivate a strong component ecosystem by attracting substantial investments in the electronics manufacturing sector, enhancing domestic value addition (DVA) by building capacity and expertise, and linking Indian enterprises with global value chains (GVCs).
The initiative is set to span six years, including a one-year gestation period, with part of the incentives contingent upon meeting employment targets, as stated by the Cabinet.
This plan offers tailored incentives to Indian manufacturers designed to address specific challenges across various component categories and subassemblies, enabling them to gain technological capabilities and realize economies of scale.
Domestic production of electronic goods has surged from Rs 1.90 lakh crore in FY 2014-15 to Rs 9.52 lakh crore in FY 2023-24, achieving a CAGR exceeding 17 percent.
Similarly, exports of electronic goods have escalated from Rs 0.38 lakh crore in FY 2014-15 to Rs 2.41 lakh crore in FY 2023-24, with a CAGR greater than 20 percent.
The India Electronics and Semiconductor Association (IESA) expressed its approval of the government's endorsement of the production-linked incentive (PLI) scheme for electronic components and subassemblies manufacturing, a longstanding request from the industry.
According to an IESA report, India's electronics market for domestic manufacturing and exports is projected to reach $400 billion by 2030.
“The Component PLI will boost the Make in India initiative, facilitating enhanced value addition and fortifying the domestic supply chain while reducing imports. Coupled with the ramp-up in semiconductor manufacturing and the existing PLI for electronics production, these measures will bolster India's competitiveness on the global stage,” remarked Ashok Chandak, President of IESA.
