Synopsis
On March 28, New Delhi announced the Rs 22,919 crore Electronics Component Manufacturing Scheme, aiming to create 1 lakh direct jobs and bolster local production of essential electronic components. The initiative is set to strengthen the domestic supply chain and position India as a global electronics manufacturing hub.Key Takeaways
- Investment of Rs 59,350 crore is expected.
- Projected production output of Rs 4,56,500 crore.
- Creation of 91,600 direct jobs.
- Fivefold increase in production over a decade.
- Support from the Electronic Industries Association of India.
New Delhi, March 28 (NationPress) The Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS) has the potential to create almost 1 lakh direct jobs along with numerous indirect job opportunities. This scheme emphasizes the local manufacturing of sub-assemblies and essential components, including inductors, resistors, PCBs, and capacitors.
With this initiative, the government shifts its attention to both finished products and core components. The new scheme aims to enhance value chains, benefiting other sectors while promoting export-driven growth.
The incentives include employment-linked incentives (separate from the existing PLI), capital subsidies (which will benefit high-capex, low-turnover sectors), and production/turnover-linked incentives.
This scheme is projected to attract an investment of Rs 59,350 crore, generate a production output of Rs 4,56,500 crore, and create an additional direct employment opportunity for 91,600 individuals, alongside many indirect jobs during its operational period.
Over the past decade, production has increased fivefold (with a 17 percent CAGR), reaching Rs 9.5 lakh crore in 2024, while 25 lakh jobs have been created.
Exports have surged sixfold (with a 43 percent CAGR) to Rs 2.4 lakh crore in 2024, making electronics one of India’s top three export categories.
The Electronic Industries Association of India (ELCINA) expressed its support for the Cabinet’s endorsement of the Electronics Component Manufacturing Scheme, which is a transformative initiative with an allocation of Rs 22,919 crore, targeting passive components, electromechanical components, and sub-assemblies.
This scheme is set to fortify India’s domestic electronics supply chain and promote self-reliance.
This initiative represents a pivotal step in India’s ambition to emerge as a global hub for electronics manufacturing by increasing Domestic Value Addition and enhancing integration with Global Value Chains (GVCs).
Rajoo Goel, Secretary General of ELCINA, stated that this scheme is a game-changer that will bolster India’s status as a leader in global electronics manufacturing.
The scheme offers focused incentives for passive components, SMD, and Non-SMD, thereby nurturing the broader component ecosystem and advancing component manufacturing.
“This initiative addresses a long-standing gap in the supply chain and will enhance the domestic ecosystem, boosting our global competitiveness,” Goel remarked.
