Blitz Bureau
In a major push for domestic electronics manufacturing, the Union Cabinet on March 28 cleared a Rs 22,919 crore Production-Linked Incentive (PLI) scheme. CNBC-TV18 had reported on this development on March 27, quoting sources.
The scheme, finalised by the Ministry of Electronics and Information Technology (MeitY), is focused on increasing local production of key electronic components. The PLI scheme focused on boosting domestic production of sub-assemblies and bare components like PCBs, capacitors, fuses, and resistors, Union Electronics and IT Minister Ashwini Vaishnaw said.
The scheme aims to complement semiconductor manufacturing and strengthen India’s supply chain for key electronic components, reducing dependence on imports.
Vaishnaw highlighted that the electronics sector has generated 25 lakh jobs, driven by the Government’s push for local manufacturing.
He also pointed out that the PLI scheme will have three parts — employment-linked incentives, capital support, and incremental turnover-linked incentives. He added that labour, customs, and taxation reforms are in the works to further support the sector.
Electronics is already among India’s top three export categories, with exports expected to double in 3.5 years from the current Rs 2.5 lakh crore. States are also welcome to offer additional incentives over and above PLI, with some already showing interest.
The component manufacturing initiative is expected to generate Rs 4.56 lakh crore in production and Rs 59,350 crore in investments, while creating 91,600 direct jobs and many more indirect employment opportunities.
Additionally, value addition in domestic electronics manufacturing is projected to rise to 35-40 per cent.
The scheme will serve multiple sectors, including telecom, consumer electronics, medical devices, automobiles, and power. By increasing value addition in manufacturing, the Government aims to position India as a global hub for electronics components, reducing reliance on foreign suppliers and enhancing self-sufficiency in critical technologies.
This PLI replaces the now-defunct Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which was discontinued in March 2024.
Industry stakeholders had initially sought a Rs 40,000 crore allocation to cover a broader range of electronic components. However, the Government has set the initial outlay at Rs 22,919 crore, with the possibility of expansion based on industry demand.