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The Union Cabinet, chaired by Prime Minister Narendra Modi approved the electronics component manufacturing scheme with a funding of Rs 22,919 crore.

In a major boost for India’s electronics industry, the central government has approved a Rs 22,919 crore Production-Linked Incentive (PLI) scheme to promote the manufacturing of non-semiconductor (passive) electronic components. The PLI scheme will be implemented over the next six years and is expected to generate direct employment for 91,600 people, Union Electronics and IT Minister Ashwini Vaishnaw said. Here are all the details you need to know about the PLI scheme.

The PLI scheme is projected to attract an investment of approximately Rs 59,350 crore and is expected to support several key sectors, including telecom, consumer electronics, automobiles, medical devices and power sectors.

‘Atmanirbhar’ plan in electronics supply chain

To make India ‘Atmanirbhar’ in the electronics supply chain, 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.

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. This scheme aims to develop a robust component ecosystem by attracting large investments in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs).

The tenure of the scheme is six years with one year of gestation period and the payout of a part of the incentive is linked with employment targets achievement, according to the Cabinet.

Incentives to Indian manufacturers

The scheme 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.

As per IESA report, India’s electronics market of domestic manufacturing and exports expected to grow to $400 billion by the year 2030.

“The Component PLI will accelerate the ‘Make in India’ initiative, driving higher value addition and strengthening the domestic supply chain with import reductions. Alongside the semiconductor manufacturing ramp-up and the existing PLI for electronics manufacturing, these initiatives will enhance India’s global competitiveness,” said Ashok Chandak, President, IESA.

(With inputs from agencies)