Cabinet Approves Rs 229.19 Billion ECM Scheme
ECONOMY & POLICY

Cabinet Approves Rs 229.19 Billion ECM Scheme

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)             

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)             

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