In a strategic move to build self-reliance in the electronics supply chain, the Union Cabinet has approved the Electronics Component Manufacturing Scheme with an outlay of ₹22,919 crore. The initiative is expected to attract ₹59,350 crore in investments and enable production worth ₹4,56,500 crore over six years. In addition to these targets, the scheme is estimated to generate 91,600 direct jobs and a considerable number of indirect employment opportunities.
Multi-Layered Incentives to Support Key Segments
The scheme offers differentiated incentives tailored to address specific gaps in various categories of components and sub-assemblies. This includes:
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Turnover-linked incentives for display module sub-assemblies, camera modules, passive components, PCBs, Li-ion cells, and enclosures.
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Hybrid incentives for high-density interconnect PCBs and surface-mounted devices (SMDs).
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Capex incentives for parts and capital goods used in electronics manufacturing.
This tiered approach is designed to build scale and competitiveness among Indian manufacturers while integrating them into global value chains.
Structured for Long-Term Impact
The scheme will run for six years, with a one-year gestation period. A portion of the incentive payout is linked to achieving employment targets, ensuring accountability and sustained impact. This strategic roadmap supports not just domestic value addition but also technological advancement and global integration.
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Rationale and Economic Context
Electronics is among the most traded and fastest-growing sectors globally, with a transformative role in digital economies. India has already shown momentum in electronics production, which has grown from ₹1.9 lakh crore in FY15 to ₹9.52 lakh crore in FY24, at a CAGR of over 17%. Exports have also surged more than sixfold in the same period.
The new scheme builds on this foundation to reduce import dependency and further India’s ambition of becoming a hub for high-value electronics manufacturing. As component manufacturing takes centre stage, the focus now shifts to developing cutting-edge capacities within India to reduce reliance on foreign imports.
With the rollout of this scheme, India is poised to strengthen its position as a critical player in the global electronics supply chain.
