News Brief
Government Exploring Dedicated PLI Scheme For Electronics Component Manufacturing
New PLI scheme for electronics component manufacturing under discussion. (Representative image)
The Ministry of Electronics and Information Technology is considering a separate production-linked incentive (PLI) scheme for electronics component manufacturing.
The ministry is discussing this potential scheme with the Ministry of Commerce and Industry and NITI Aayog, as per reports by Financial Express.
The proposal for a distinct PLI scheme for local electronics component production has arisen from ongoing talks between the government and the industry.
Some industry players have suggested that a separate PLI scheme is needed to support the production of electronic components.
The current scheme, called scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS), groups various electronic components together and offers a 25 per cent financial incentive on their capital expenditure.
Industry experts argue that different types of electronic components have varying financial needs, sizes, and production methods. A separate PLI scheme could address this issue.
While the Ministry of Electronics and Information Technology is interested in this idea, the Ministry of Commerce is cautious about introducing more PLI schemes.
This decision is crucial because the current SPECS scheme is set to end by 31 March 2024. There is also a proposal to extend the SPECS scheme and increase its allocation.
The next steps involve discussions with industry stakeholders to create a framework for the new PLI scheme, determining the incentives and parameters for companies manufacturing components in India.
The government has set an ambitious goal of reaching $300 billion in electronics manufacturing production by 2025-2026, a significant increase from the $102 billion in FY23.
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