New Delhi: The government on Friday approved a long-awaited non-semiconductor electronics component production-linked incentive scheme with an outlay of Rs 22,919 crore, Union Electronics and IT Minister Ashwini Vaishnaw said.
The Union Cabinet in its meeting here on Friday, approved the proposal.
The minister said that the scheme will attract investments of around Rs 59,350 crore. “Passive components are approved under the Electronics Component PLI scheme. It has a total package of Rs 22,919 crore. This will be for over six years,” Vaishnaw said.
This scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in the electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs), the government said in a statement.
The scheme envisages attracting an investment of Rs.59,350 crore, resulting in the production of Rs.4,56,500 crore and generating additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.
Electronics is one of the highest-traded and fastest-growing industries globally and is expected to play a pivotal role in shaping the global economy and advancing a country’s economic and technological development.
Since electronics permeates all sectors of the economy, it has economic and strategic importance. With various initiatives of Gol, the electronics manufacturing sector has witnessed remarkable growth in the last decade.
The domestic production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%.
The exports of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%.
