Govt announces Rs 22K cr incentive to promote electronics component mfg

The Union Cabinet chaired by PM Narendra Modi today approved a new scheme for India’s self-reliance in the electronic manufacturing sector.

The Electronics Component Manufacturing Scheme will have a cost of Rs 22,919 crore and will boost India’s indigenous capacity in the electronics supply chain.

“This scheme aims to develop a robust component ecosystem by attracting large investments global and 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),” Union Information and Broadcasting Minister Ashwani Vaishnaw said.

The scheme envisages investment of Rs 59,350 crore, production of Rs 4,56,500 crore and generation of additional direct employment of 91,600 persons besides many indirect jobs.

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.