India Boosts Electronic Component Manufacturing with New Incentive Scheme

The Indian government has introduced a production-linked incentive scheme for passive electronic components with a budget of Rs 22,919 crore. This initiative, expected to generate 91,600 jobs and attract significant investment, aims to bolster domestic production and reduce import dependency in this sector.

The Union Cabinet has approved a new production-linked incentive scheme for passive electronic components, according to Union Electronics and IT Minister Ashwini Vaishnaw. The scheme, with an outlay of Rs 22,919 crore, marks the government's first focused effort to promote domestic manufacturing in this segment.

Minister Vaishnaw emphasized that the initiative will create direct employment for 91,600 individuals and attract approximately Rs 59,350 crore in investments. This move is expected to support several key sectors, including telecom, consumer electronics, and healthcare, by increasing local component production.

Despite the projected benefits, the Electronic Industries Association of India warns of a significant production deficit that could reach USD 248 billion by 2030 without sustained government support. The association estimates that the new scheme could reduce this deficit to USD 102 billion, provided additional initiatives are undertaken.

(With inputs from agencies.)