The Electronics Component Manufacturing Scheme has received an overwhelming response, drawing investment proposals worth ₹1.15 lakh crore, Union Minister for Electronics and IT Ashwini Vaishnaw announced. The proposals significantly surpass the government’s initial targets for investment, employment, and production, exceeding expectations set when the scheme was designed.
Application Window Closes with Strong Submissions
“Application window for Electronics Component Manufacturing Scheme closed on September 30. We have received investment proposals of ₹1,15,351 crore,” Vaishnaw said, as quoted by PTI. He noted that the government had initially planned to attract investments worth around ₹59,000 crore. The application window for the capital equipment segment, however, remains open.
Massive Job Creation Expected
Electronics and IT Secretary S Krishnan stated that the scheme is now expected to generate 1.41 lakh jobs, far surpassing the original target of 91,600 direct jobs. The initiative is also projected to support several indirect employment opportunities through the growth of the domestic electronics ecosystem.
Cabinet Approval and Scheme Objectives
Earlier this year, the Union Cabinet approved the Electronics Component Manufacturing Scheme with an outlay of ₹22,919 crore. Its primary goal is to boost India’s self-reliance in the electronics supply chain by attracting global and domestic investments in component manufacturing, expanding domestic production through capacity and capability building, and integrating Indian companies into global value chains.
At the time of its launch, the scheme was expected to attract ₹59,350 crore in investments, generate production worth ₹4,56,500 crore, and create 91,600 direct jobs over its tenure.
Targeted Incentives for Manufacturers
To encourage manufacturing, the scheme provides targeted fiscal incentives tailored to specific segments. These include turnover-linked incentives, capital expenditure incentives, and hybrid incentives that combine elements of both. The incentives are designed to address barriers in component manufacturing, support technological skill development, and help companies achieve economies of scale.
