News Brief
India Eyes Self-Reliance In Electronics Supply Chain With Rs 22,919 Crore Scheme For Targeted Incentives—All About It
Electronics Manufacturing (Representative Image)
In a bid to make India self-reliant in electronics supply chain, the Prime Minister Narendra Modi-led Union Cabinet on Friday (29 March) approved the Electronics Component Manufacturing Scheme with a funding of Rs 22,919 crore.
The scheme aims to develop a robust component ecosystem in the country by attracting large investments, global as well as domestic, in electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
"The scheme envisages to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 persons and many indirect jobs as well during its tenure," a government statement said.
Key features of the scheme:
1. The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.
The target segment covered under the scheme and nature of incentive offered include:
a. Sub-Assemblies
For Display Module Sub-assembly and Camera Module Sub-assembly, the scheme provides turnover-linked incentives.
Additionally, Enclosures for Mobile, IT Hardware products, and related devices are also eligible for turnover-linked incentives.
c. Selected Bare Components
Manufacturers of High-density Interconnect (HDI)/Modified Semi-additive Process (MSAP) / Flexible PCBs and SMD Passive Components will receive hybrid incentives.
d. Supply Chain Ecosystem and Capital Equipment
Under the scheme, manufacturers producing parts and components used in the production of sub-assemblies (a) and bare components (b and c) will be eligible for CapEx incentives.
Additionally, CapEx incentives will be available for the production of capital goods used in electronics manufacturing, including their sub-assemblies and components.
2. Tenure of the Scheme: The scheme will be implemented over six years, with a one-year gestation period.
3. Employment-linked Payout: Payout of a part of the incentive is linked with employment targets achievement.
