The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the Electronics Component Manufacturing Scheme with a funding of Rs.22,919 crore to make India Atmanirbhar in electronics supply chain. This scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs). The scheme envisages to attract investment of Rs.59,350 crore, result in production of Rs.4,56,500 crore and generate additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.
Salient Features of the Scheme
The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.
Target Segments
The Target Segment Category under Scheme includes
- Sub-assemblies
- Bare components
- Selected bare components
- Supply chain ecosystem and Capital equipment.
Types of Incentive
The scheme provides differentiated fiscal incentive on target segment products in terms of turnover
- Turnover linked incentive
- Capex incentive and
- Hybrid incentive [ i.e. combination of both (a) and (b)]
Tenure of the Scheme
Turnover Linked Incentive:
- Six (6) years with one (1) year of gestation period
- Capex Incentive: Five (5) years
Scheme Registration (Scheme shall be open to receive applications from 1st May 2025)
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Related Links
- Electronics Component Manufacturing Scheme
- Press Release : Electronics Component Manufacturing Scheme for making India Atmanirbhar in electronics supply chain
- Press Release : Launches Guidelines and Portal for Electronics Component Manufacturing Scheme
- Press Release : Strengthening India's position as a global hub for electronics manufacturing