In a significant move to strengthen India’s electronics supply chain and achieve “Atmanirbhar” (self-reliant) status, the Union Cabinet has approved the Electronics Component Manufacturing Scheme with a substantial funding of Rs. 22,919 crore. This press release was issued on March 28, 2025.
The electronics industry is a critical sector globally, driving economic and technological development. India has witnessed remarkable growth in its electronics manufacturing sector in the past decade, driven by various government initiatives.
- Domestic production of electronic goods has surged from Rs. 1.90 lakh crore in FY 2014-15 to Rs. 9.52 lakh crore in FY 2023-24, with a CAGR of over 17%.
- Electronics goods exports have also increased significantly, from Rs. 0.38 lakh crore in FY 2014-15 to Rs. 2.41 lakh crore in FY 2023-24, with a CAGR of over 20%.
The Electronics Component Manufacturing Scheme aims to:
- Develop a robust electronics component ecosystem in India.
- Attract significant global and domestic investments in electronics component manufacturing.
- Increase Domestic Value Addition (DVA) by enhancing capacity and capabilities.
- Integrate Indian companies into Global Value Chains (GVCs).
The scheme is projected to:
- Attract investments of Rs. 59,350 crore.
- Generate a production output of Rs. 4,56,500 crore.
- Create 91,600 direct jobs, along with numerous indirect employment opportunities.
Salient Features
The scheme offers tailored incentives to Indian manufacturers, addressing specific challenges for various component and sub-assembly categories. This aims to foster technological capabilities and economies of scale.
Target Segments and Incentives
- Sub-assemblies (display modules, camera modules): Turnover-linked incentives.
- Bare components (non-SMD passive components, electro-mechanicals, multi-layer PCBs, Li-ion cells, enclosures): Turnover-linked incentives.
- Selected bare components (HDI/MSAP/Flexible PCBs, SMD passive components): Hybrid incentives.
- Supply chain ecosystem and capital equipment: Capex incentives.
The scheme will run for six years, including a one-year gestation period. A portion of the incentive payouts will be tied to the achievement of employment targets.
