Cabinet Approves Electronics Component Manufacturing Scheme

On 28th March 2025, the Union Cabinet approved the Electronics Component Manufacturing Scheme with a Rs. 22,919 crore budget to boost India’s self-reliance in the electronics supply chain and attract large domestic and global investments.

Key Points

Investment & Production Impact: Expected to attract Rs. 59,350 crore in investments and generate Rs. 4,56,500 crore in electronic products.
Employment Generation: Will create 91,600 direct jobs, along with additional indirect opportunities.
Incentive Structure: Differentiated incentives for Indian manufacturers to acquire technology and scale operations.
Target Segments: Covers sub-assemblies (display, camera modules), bare components (Li-ion cells, HDI, PCBs, SMD components).
Scheme Tenure: Six years, including a one-year gestation period; incentives linked to employment targets.
Strategic Impact: Strengthens India’s position as a global electronics manufacturing hub.