How has India’s electronics component scheme attracted over Rs 1 lakh crore?
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Synopsis
India's ambitious Electronics Component Manufacturing Scheme has garnered a staggering Rs 1.15 lakh crore in investment proposals, significantly surpassing initial targets. This initiative not only reflects the government's commitment to enhancing domestic production but also underscores the growing global confidence in India's manufacturing capabilities.
Key Takeaways
- Investment proposals worth Rs 1.15 lakh crore received.
- The scheme aims to enhance domestic production of electronic components.
- Job creation commitments exceed initial targets significantly.
- The application window for the capital equipment segment remains open.
- The initiative reflects global trust in India's manufacturing capabilities.
New Delhi, Oct 2 (NationPress) The Union Minister for Electronics and IT, Ashwini Vaishnaw, revealed on Thursday that the government has attracted investment proposals totaling Rs 1.15 lakh crore under the Electronics Component Manufacturing Scheme.
This initiative was launched to enhance domestic manufacturing of electronic components and devices in India.
Vaishnaw stated, "The investment applications exceeding Rs 1 lakh crore under this scheme clearly illustrate PM Narendra Modi's commitment to electronics manufacturing and the global trust India has built over the past 11 years. This trust is translating into investment, job creation, and increased production."
The minister noted that the proposals have surpassed initial expectations regarding investment, employment, and production goals set during the scheme's inception.
“The application period for the scheme concluded on September 30, and we have received investment proposals amounting to Rs 1,15,351 crore,” Vaishnaw mentioned.
He pointed out that while the government initially estimated around Rs 59,000 crore in investments, the final proposals have nearly doubled that figure.
The capital equipment segment of the scheme is still accepting applications.
The Union Cabinet approved the Electronics Component Manufacturing Scheme in March, allocating a budget of Rs 22,919 crore for six years.
The scheme aims to attract massive investments into the electronics component manufacturing sector, enhance domestic value creation, and integrate Indian firms into global value chains (GVCs).
It is designed to create a robust component ecosystem by providing targeted incentives to Indian manufacturers across various categories of components and sub-assemblies, thereby improving their scale and technological capabilities.
The initial targets of the scheme included Rs 59,350 crore in investments, Rs 4,56,500 crore in production, and the creation of 91,600 direct jobs along with numerous indirect employment opportunities, propelling India's growth in the electronics manufacturing domain.
Electronics and IT Secretary S. Krishnan highlighted that the proposals submitted under the scheme include pledges to generate employment for 1.41 lakh individuals, significantly exceeding the target of 91,600 jobs.
Point of View
The significant investments attracted by India’s Electronics Component Manufacturing Scheme reflect a crucial step towards building a self-reliant manufacturing sector. This initiative not only aims to enhance domestic production but also solidifies India's standing in global supply chains, ensuring long-term economic growth and job creation.
NationPress
02/10/2025
Frequently Asked Questions
What is the purpose of the Electronics Component Manufacturing Scheme?
The scheme aims to boost domestic production of electronic components, attract large-scale investments, and integrate Indian companies into global value chains.
How much investment has been proposed under this scheme?
Investment proposals worth Rs 1.15 lakh crore have been received under the scheme.
What are the job creation targets of the scheme?
The scheme initially targeted 91,600 direct jobs, but proposals indicate commitments to create employment for 1.41 lakh individuals.
When did the application window for the scheme close?
The application window for the scheme closed on September 30.
What was the original investment projection for the scheme?
The government originally projected around Rs 59,000 crore of investment under this scheme.
