Electronic Component Manufacturing Gets ₹23,000 Crore Boost Under PLI Scheme.

The Union Cabinet on Friday approved the Electronics Component Manufacturing Scheme (ECMS) with a funding allocation of ₹22,919 crore to boost domestic production of passive electronic components. The scheme aims to attract total investments of ₹59,350 crore from manufacturers, generate ₹4.56 lakh crore in production, and create direct employment for around one lakh people.

Announcing the decision, Ashwini Vaishnaw, Minister of Electronics and IT, said the scheme will be valid for six years and is designed to develop a robust ecosystem for passive electronic components such as resistors, capacitors, and inductors. It will encourage large-scale investments from global and domestic manufacturers, enhance domestic value addition, and integrate Indian companies into global supply chains.

Industry leaders have long advocated for a dedicated PLI scheme for non-semiconductor components, following the approval of the Semiconductor PLI Scheme in December 2021. The government plans to launch the ECMS within a fortnight, similar to the swift rollout of the Semiconductor PLI Scheme.

The scheme includes three types of incentives: employment-linked incentives, capital subsidies for high-capex, low-turnover segments, and incentives based on production and turnover. It also offers companies the flexibility to set up manufacturing facilities anywhere in the country.

Vaishnaw highlighted that India's electronics sector has expanded fivefold in the past decade, growing at a CAGR of 17% to reach ₹10 lakh crore in 2024. Exports have surged sixfold to ₹2.4 lakh crore, creating 25 lakh jobs. The government expects electronics exports to double in the next four years.

Industry leaders welcomed the move, calling it a game-changer for India’s electronics sector. Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, said the scheme would drive job creation, MSME participation, and value addition in manufacturing. Gururaj, Managing Director of Optiemus Electronics, added that the initiative would position India as a global powerhouse for electronics manufacturing.

HBL