Image Credit: Ministry of Railways
India Approves ₹22,919 Crore Scheme to Boost Electronics Component Manufacturing
In a major push to strengthen domestic manufacturing, the Union Cabinet has approved a ₹22,919 crore scheme to promote the production of electronic components within India. This initiative is aimed at reducing import dependence, enhancing export capabilities, and making India a global hub for electronics manufacturing.
Key Goals of the Scheme
The scheme is centered around three major objectives:
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Boost Local Manufacturing: The initiative is intended to accelerate the production of essential electronic components—such as semiconductor parts, display units, and circuit boards—used across sectors like telecom, automotive, power, and consumer electronics.
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Job Creation: The government expects the scheme to generate around 92,000 direct jobs, further boosting employment in the electronics and semiconductor ecosystem.
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Incentive-Driven Growth: Employment-linked incentives will be provided to companies investing in component manufacturing, encouraging both domestic and foreign players to expand operations in India.
Rising Electronics Production
India’s electronics manufacturing sector has seen remarkable growth over the past decade. Between 2014-15 and 2023-24, domestic production increased five-fold, while exports rose six-fold. This upward trend has positioned India as one of the fastest-growing electronics markets globally.
The newly approved scheme aims to maintain and accelerate this momentum by building a stronger component supply chain within the country. The focus on foundational electronics components is expected to support the entire value chain, from mobile phones to electric vehicles.
Strategic Importance and Vision
The move aligns with India’s long-term goal of becoming self-reliant in key sectors under the Aatmanirbhar Bharat initiative. By localizing component manufacturing, India aims to reduce its dependency on global supply chains, particularly in critical sectors like semiconductors and electronic hardware.
This initiative also supports the government’s broader ambition to turn India into a global manufacturing powerhouse and export hub, especially as international companies look for reliable alternatives to existing supply chains.
