India Advances Electronics Manufacturing with ₹8,803 Crore Investment

A ₹8,803.14 crore investment under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) has facilitated production worth ₹18,083.55 crore, as reported by Minister of State for Electronics & IT, Jitin Prasada. The scheme provides financial incentives to various sectors and aims to boost domestic manufacturing.

An incremental investment of ₹8,803.14 crore was made under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, leading to production worth ₹18,083.55 crore, Minister of State for Electronics & Information Technology, Jitin Prasada, informed Rajya Sabha in a written reply on Friday.

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) was notified on April 1, 2020, and was open to receive applications until March 31, 2024. The scheme provides a financial incentive of 25 percent on capital expenditure for electronic components, e-waste recycling, mechanics, micro/nano-electronic components, solar photovoltaic (SPV) polysilicon, SPV wafers and solar cells, specialized sub-assemblies, and capital goods for the manufacture of the aforesaid goods. As of June 2024, an incremental investment of ₹8,803.14 crore had been made under the scheme.

In his written reply, the minister said this investment has led to production worth ₹18,083.55 crore until June 2024. To boost domestic manufacturing and attract investment in the mobile phone value chain, including electronic components and semiconductor packaging, the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified in April 2020.

The PLI scheme extends an incentive of 3-6 percent on incremental sales of goods manufactured in India and covered under target segments—mobile phones and Specified Electronic Components, to eligible companies for a period of 5 years. Till June 2024, an incremental investment of ₹8,390 crore had been made under the PLI scheme, resulting in production worth ₹5,14,960 crore till June 2024.

As part of its Atmanirbhar and Make in India plans, the government launched production incentive (PLI) schemes in varied sectors, including electronics, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports. (ANI)

(With inputs from agencies.)