The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Electronics Component Manufacturing Scheme with a funding of Rs 22,919 crore to make India ‘Atmanirbhar’ in the electronics supply chain.
This scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in the electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
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The scheme envisages attracting investment of Rs 59,350 crore, resulting in production of Rs 4,56,500 crore and generating additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.
It provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.
The tenure of the scheme is six years with a year of gestation period. Payout of a part of the incentive is linked with employment targets achievement.
Electronics is one of the highest-traded and fastest-growing industries globally and is expected to play a pivotal role in shaping the global economy and advancing a country’s economic and technological development.
Since electronics permeates all sectors of the economy it has economic and strategic importance. With various initiatives of Gol, the electronics manufacturing sector has witnessed remarkable growth in the last decade.
The domestic production of electronic goods has increased from Rs 1.90 lakh crore in FY 2014-15 to Rs 9.52 lakh crore in FY 2023-24 at a CAGR of more than 17 per cent. The exports of electronic goods have also increased from Rs 0.38 lakh crore in FY 2014-15 to Rs 2.41 lakh crore in FY 2023-24 at a CAGR of more than 20 per cent.
