New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Electronics Component Manufacturing Scheme with a funding of Rs.22,919 crore.
The initiative is aimed at making India self-reliant in the electronics supply chain by fostering domestic production and attracting significant investments from global and local manufacturers.
The scheme is designed to develop a strong electronics component ecosystem by encouraging large-scale investments. It seeks to enhance Domestic Value Addition (DVA) through capacity building, fostering technological advancements, and integrating Indian firms with Global Value Chains (GVCs). By doing so, the government aims to position India as a key player in the global electronics manufacturing industry.
The scheme is expected to attract investments of Rs.59,350 crore, resulting in the production of electronic components worth Rs.4,56,500 crore.
Additionally, it is projected to generate 91,600 direct jobs, along with numerous indirect employment opportunities, significantly boosting India’s economy.
Electronics Component Manufacturing Scheme, will attract large investments in the ecosystem.
This will lead to:
– Investment: ₹59,350 crore
– Production: ₹4,56,500 crore
– Employment: 91,600 (direct)#CabinetDecision pic.twitter.com/unoOzXVgxa— Ashwini Vaishnaw (@AshwiniVaishnaw) March 28, 2025
Salient Features of the Scheme
- The scheme offers targeted incentives tailored to different categories of components and sub-assemblies, addressing specific challenges faced by manufacturers.
- The tenure of the scheme is six years, with an initial gestation period of one year.
- A portion of the incentive payout is linked to employment generation, ensuring job creation alongside industrial growth.
Electronics is among the world’s most rapidly expanding industries, playing a crucial role in economic and technological development. Recognizing its strategic importance, the Indian government has taken several steps to promote domestic manufacturing.
With the implementation of this scheme, India is poised to reduce its dependency on imported electronics components and emerge as a global hub for electronics manufacturing.
The initiative aligns with the government’s broader vision of an ‘Atmanirbhar Bharat’ (self-reliant India) and reinforces India’s commitment to strengthening its industrial base while creating substantial employment opportunities.
