India Boosts Electronics Component Manufacturing with Rs 22,919 Crore Scheme

The Indian government announced a Rs 22,919 crore Electronics Component Manufacturing Scheme to boost the production of passive electronic components. This initiative aims to create 91,600 jobs and attract investments of Rs 59,350 crore. The scheme anticipates producing Rs 4.56 lakh crore worth of components over six years.

The Union Cabinet has given the green light to an ambitious Electronics Component Manufacturing Scheme, earmarking Rs 22,919 crore to bolster the domestic production of passive, non-semiconductor components. Union Electronics and IT Minister Ashwini Vaishnaw disclosed the cabinet's decision, underscoring its significance as the first initiative focusing exclusively on passive electronic components.

The scheme is set to create direct employment opportunities for 91,600 individuals and aims to attract an investment influx of approximately Rs 59,350 crore. It promises to fulfill the demands of various sectors like telecom, consumer electronics, the automobile industry, medical devices, and the power sector.

Moreover, the scheme is poised to deliver a production output worth Rs 4.56 lakh crore. According to the Electronic Industries Association of India (Elcina), non-semiconductor components realistically accounted for a production worth USD 13 billion in 2022, with anticipated growth to USD 20.7 billion by 2026. However, Elcina has warned of a potential USD 248 billion deficit by 2030 without governmental backing for local initiatives, which this new scheme endeavors to address.

(With inputs from agencies.)