The Union Cabinet has approved the Electronics Component Manufacturing Scheme to make India Atmanirbhar in electronics supply chain.
About Scheme
- Objective: To develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
- Funding: Rs.22,919 crore
- Benefits: It 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 persons and many indirect jobs as well during its tenure.
- Tenure: 6 years with 1 year of gestation period.
- Payout of a part of the incentive: It is linked with employment targets achievement.
- Incentives: It will provide 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 target segment covered under the scheme and nature of incentive offered are as under:
| Target segments | Nature of Incentive | |
| A | Sub-assemblies | |
| 1 | Display module sub-assembly | |
| 2 | Camera module sub-assembly | |
| B | Bare Components | |
| 3 | Non-Surface Mount Devices (non-SMD) passive components for electronic applications | Turnover linked incentive |
| 4 | Electro-mechanicals for electronic applications | |
| 5 | Multi-layer Printed Circuit Board (PCB) | |
| 6 | Li-ion Cells for digital applications (excluding storage and mobility) | |
| 7 | Li-ion Cells for digital applications (excluding storage and mobility) | |
| C | Selected bare components | |
| 8 | High-density interconnect (HDI)/ Modified semi-additive process (MSAP)/ Flexible PCB | Hybrid incentive |
| 9 | SMD passive components | |
| D | Supply chain ecosystem and capital equipment for electronics manufacturing | |
| 10 | Parts/components used in manufacturing of sub-assembly (A) and bare components (B) & (C) | Capex incentive |
| 11 | Capital goods used in electronics manufacturing including their sub-assemblies and components | |
Background
- 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 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%.
- 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%.