NewKerala.com

Key Points

The Indian government has approved a Rs 22,919 crore PLI scheme to boost domestic electronics component manufacturing. This initiative aims to create nearly 1 lakh jobs and strengthen India’s global supply chain presence. Electronics exports have grown six-fold in a decade, now ranking among India’s top three export categories. Industry leaders hail this as a game-changer for India’s self-reliance in electronics manufacturing.

Key Points: Rs 22,919 Crore PLI Scheme to Boost India Electronics Supply Chain

  • Rs 22,919 crore PLI targets passive & electromechanical components
  • Aims to generate 91,600 direct jobs
  • Expected production worth Rs 4.56 lakh crore
  • Strengthens India’s global electronics manufacturing position
2 min read

Rs 22,919 crore component PLI to boost India's domestic electronics supply chain

India's new Rs 22,919 crore PLI scheme aims to strengthen domestic electronics manufacturing, create 1 lakh jobs, and boost exports.

"This initiative fills a long-standing void in the supply chain and will strengthen domestic ecosystem, improving our global competitiveness. – Rajoo Goel, ELCINA"

New Delhi, March 28

The Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS), which has the potential to generate nearly 1 lakh direct jobs and several indirect jobs, focuses on the local production of sub-assemblies and bare components like inductors, resistors, PCBs and capacitors, etc.

With this, the government now focuses on finished goods as well as core components and the new scheme will deepen value chains to positively impact other sectors, along with promoting export-led growth.

The three components of incentives and employment-linked incentives (distinct from existing PLI), capital subsidy (high capex, low turnover segments to benefit) and incentives linked to production/turnover.

The scheme envisages to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 people and many indirect jobs as well during its tenure.

Meanwhile, there has been 5 times increase in production over 10 years (17 per cent CAGR) to reach Rs 9.5 lakh crore in 2024, while 25 lakh jobs have been generated.

There has also been six times increase in exports (43 per cent CAGR) to Rs 2.4 lakh crore in 2024. Electronics items are now among India’s top 3 export items.

The Electronic Industries Association of India (ELCINA) welcomed the Cabinet’s approval of the Electronics Component Manufacturing Scheme, a landmark initiative with an allocation of Rs 22,919 crore focusing on passive components, electromechanical components and sub-assemblies.

The scheme will strengthen India’s domestic electronics supply chain and self-reliance.

This initiative marks a significant milestone in India’s journey towards becoming a global hub for electronics manufacturing by enhancing Domestic Value Addition and greater integration with the Global Value Chains (GVCs).

Rajoo Goel, Secretary General, ELCINA, said the scheme is a game-changer that will reinforce India’s position as a global electronics manufacturing leader.

The scheme provides targeted incentives for passives, SMD and Non-SMD, and the component eco-system at large, fostering advanced component manufacturing.

“This initiative fills a long-standing void in the supply chain and will strengthen domestic ecosystem, improving our global competitiveness,” said Goel.

- IANS

Share this article:

Reader Comments

P
Priya K.
This is fantastic news! 👏 Finally some concrete steps towards making India self-reliant in electronics manufacturing. The job creation potential is massive and will help so many families. Hope the implementation is smooth!
A
Amit S.
While I appreciate the initiative, I'm concerned about the execution. Previous PLI schemes had mixed results. The government needs to ensure transparency in fund allocation and proper monitoring mechanisms.
R
Rahul M.
The numbers look impressive - ₹4.5 lakh crore production and 90k+ jobs! But will small manufacturers benefit or just the big players? Need more details on how MSMEs can participate.
S
Sunita P.
As someone working in electronics manufacturing, this is exactly what we needed! The component ecosystem has been our weak point. This will reduce our dependence on imports from China. Great move!
V
Vikram J.
The export growth numbers (43% CAGR) show we're already on the right track. With this new scheme, India can truly become the electronics manufacturing powerhouse it deserves to be. Make in India! 🇮🇳
N
Neha T.
Hope they include proper training programs along with this. We need skilled workers who can handle advanced component manufacturing. Otherwise the quality might suffer.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50