Rs 22,919 crore component PLI to boost India`s domestic electronics supply chain
The Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS), which has the potential to generate nearly 1 lakh direct jobs and several indirect jobs, focuses on the local production of sub-assemblies and bare components like inductors, resistors, PCBs and capacitors, etc.
With this, the government now focuses on finished goods as well as core components and the new scheme will deepen value chains to positively impact other sectors, along with promoting export-led growth.
The three components of incentives and employment-linked incentives (distinct from existing PLI), capital subsidy (high capex, low turnover segments to benefit) and incentives linked to production/turnover.
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.
Meanwhile, there has been 5 times increase in production over 10 years (17 per cent CAGR) to reach Rs 9.5 lakh crore in 2024, while 25 lakh jobs have been generated.
There has also been six times increase in exports (43 per cent CAGR) to Rs 2.4 lakh crore in 2024. Electronics items are now among India’s top 3 export items.
The Electronic Industries Association of India (ELCINA) welcomed the Cabinet’s approval of the Electronics Component Manufacturing Scheme, a landmark initiative with an allocation of Rs 22,919 crore focusing on passive components, electromechanical components and sub-assemblies.
The scheme will strengthen India’s domestic electronics supply chain and self-reliance.
This initiative marks a significant milestone in India’s journey towards becoming a global hub for electronics manufacturing by enhancing Domestic Value Addition and greater integration with the Global Value Chains (GVCs).
Rajoo Goel, Secretary General, ELCINA, said the scheme is a game-changer that will reinforce India’s position as a global electronics manufacturing leader.
The scheme provides targeted incentives for passives, SMD and Non-SMD, and the component eco-system at large, fostering advanced component manufacturing.
“This initiative fills a long-standing void in the supply chain and will strengthen domestic ecosystem, improving our global competitiveness,” said Goel.
