Scheme to Boost Electronic Component Production Draws 70 Applications

According to reports, the government has received 70 applications for its project to manufacture electronics components worth INR 22,919 Cr. The development was confirmed by Union Minister Ashwini Vaishnaw, who also noted that small and medium-sized businesses make up the majority of the applications.

Vaishnaw informed a news source that the plan to manufacture electronics components has been well appreciated. About 70 applications have been received in the 15 days after the application was opened.

This production-linked incentive (PLI) programme for non-semiconductor electronics components was approved by the union cabinet in March. The plan is to draw in INR 59,350 Cr in investment, which will lead to INR 4,56,500 Cr in output and the creation of 91,600 new direct jobs in addition to numerous indirect positions. With a one-year gestation period, the system has a six-year duration.

A portion of the incentive's payout is also correlated with meeting employment goals. The government stated when the plan was approved that it offers Indian manufacturers unique incentives designed to help them overcome particular obstacles for different types of parts and sub-assemblies, enabling them to develop technological capabilities and realise economies of scale.

Scheme will Benefit Various Sector

The initiative is expected to help industries like telecommunications, consumer electronics, automotive, and medical devices. Vaishnaw also announced last month that the scheme's online portal would soon be activated and that the guidelines had been finalised.

Global manufacturers Foxconn, Tata Electronics, Zetwerk, and Dixon are reportedly considering investments in India via the PLI scheme, despite the fact that the initiative's investors have not been made public. These multinational corporations are planning their manufacturing hubs in collaboration with various states.

For example, Foxconn, Apple's biggest contract manufacturer, has already established a display module assembly facility in Tamil Nadu and begun conducting trial runs. Additionally, the "Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)" was introduced a few weeks ago by Tamil Nadu Chief Minister MK Stalin. This plan seeks to create 60,000 jobs in the state and draw in investments of INR 30,000 Cr.

Gujarat and UP Scaling Up Efforts to Lead the Race

According to various media reports, Gujarat and Uttar Pradesh are also vying to become major centres for the production of electronics. Uttar Pradesh is working on a draft policy that might be finished in a few weeks, while Gujarat has presented a draft policy to encourage and expand the manufacturing of electronics components.

Finance Minister Nirmala Sitharaman stated during her 2025–2026 budget speech that the government is prepared to provide the local electronics equipment industry with a much-needed boost. India produced electronics worth INR 9.52 Lakh Cr in FY24 compared to INR 1.90 Lakh Cr in FY15, according to the Economic Survey 2024–25.