Cabinet Approves Electronics Component Manufacturing Scheme

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Electronics Component Manufacturing Scheme with a funding of Rs 229.19 billion. The scheme is a major step towards making India Atmanirbhar (self-reliant) in the electronics supply chain, attracting both domestic and global investments, and developing a robust manufacturing ecosystem.

Key Objectives and Expected Impact Investment Potential – The scheme aims to attract investments worth Rs 593.5 billion. Production Growth – Expected to result in the production of Rs 4565 billion worth of electronic products. Employment Generation – Will create 91,600 direct jobs along with several indirect employment opportunities.

Salient Features of the Scheme Differentiated Incentives – The scheme offers targeted incentives to overcome specific barriers in manufacturing various components and sub-assemblies India’s Electronics Manufacturing Growth India’s electronics sector has seen remarkable growth, with domestic production rising from Rs 1.90 trillion in 2014-15 to Rs 9.52 trillion in 2023-24, achieving a CAGR of over 17%.

Electronics exports have also surged from Rs 0.38 trillion in 2014-15 to Rs 2.41 trillion in 2023-24, with a CAGR exceeding 20%.

Strengthening India’s Position in Global Electronics Market Electronics is among the fastest-growing industries worldwide, playing a crucial role in economic and technological development. By boosting domestic manufacturing and exports, this scheme will enhance India's global competitiveness and strengthen its integration into international supply chains.

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