The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Electronics Component Manufacturing Scheme with a funding of Rs 229.19 billion to strengthen India’s electronics supply chain and promote self-reliance (Atmanirbhar Bharat) in the sector. 

Objective & benefits 

The scheme aims to build a robust component ecosystem by attracting global and domestic investments, increasing domestic value addition (DVA), and integrating Indian manufacturers into global value chains (GVCs). It is expected to generate: 

• Rs 593.5 billion in investments 

• Rs 4,565 billion in production output 

• 91,600 direct jobs, along with significant indirect employment opportunities 

Key features of the scheme 

• Targeted incentives: Custom-designed incentives for different component categories and sub-assemblies to help Indian manufacturers achieve technological capabilities and economies of scale. 

• Six-year duration: The scheme will run for six years, with a one-year gestation period. 

• Employment-linked incentives: A portion of the incentive is tied to job creation targets. 

Industry growth & background 

The electronics sector is among the fastest-growing industries globally and is critical to economic and technological advancement. Over the past decade, India’s electronics manufacturing sector has witnessed remarkable growth: 

• Domestic production surged from Rs 1.90 trillion (FY 2014-15) to Rs 9.52 trillion (FY 2023-24), growing at a CAGR of over 17%. 

• Electronics exports increased from Rs 0.38 trillion (FY 2014-15) to Rs 2.41 trillion (FY 2023-24), with a CAGR exceeding 20%. 

The scheme is set to accelerate India’s emergence as a global hub for electronics manufacturing, ensuring a stronger, more self-sufficient supply chain. 

(PIB)