The Union cabinet has approved an electronics component manufacturing scheme with an outlay of ₹22,919 crore to build indigenous capacity in India's electronics supply chain.
By Aniket Chakraborty
Apr 2, 2025
The scheme aims to attract investments of ₹59,350 crore, leading to production worth ₹4,56,500 crore over its six-year tenure.
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Unlike previous production-linked incentives, this scheme will base incentives on turnover and capital expenditure, with part of the payout linked to employment targets.
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The initiative is expected to generate 91,600 direct jobs and numerous indirect employment opportunities across various sectors.
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Target segments include display modules, camera modules, multi-layered printed circuit boards, lithium-ion cells, and enclosures for mobile and IT hardware products.
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Electronics, telecom, consumer, medical devices, automobile, and power sectors are all expected to benefit from the scheme.
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India's domestic production of electronic goods has grown from ₹1.9 lakh crore in 2014-15 to ₹9.52 lakh crore in 2023-24 at a CAGR of over 17%.
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Electronics exports have increased from ₹0.38 lakh crore to ₹2.41 lakh crore over the same period, growing at a CAGR exceeding 20%.
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Industry leaders like Ajai Chowdhry of HCL welcomed the decision, noting it will enable higher value addition and attract more investments in system products.
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The scheme aims to reduce import dependence on critical components like PCBs and display modules that currently constitute 15-20% of electronic products' bill of materials.