Electronics Component Manufacturing Scheme attracts ₹1.15 trillion in investment proposals: Ashwini Vaishnaw

The Electronics Component Manufacturing Scheme has attracted investment proposals totalling ₹1.15 lakh crore, according to Union Minister for Electronics and IT Ashwini Vaishnaw.

He said that the proposals have significantly surpassed the targets for investment, employment, and production, far exceeding the objectives set during the scheme's formulation.

"Application window for Electronics Component Manufacturing Scheme closed on September 30. We have received investment proposals of ₹1,15,351 crore," news agency PTI quoted Vaishnaw.

He mentioned that the government plans to attract approximately ₹59,000 crore as investment under the scheme, and the application window for the capital equipment segment remains open.

Meanwhile, Electronics and IT Secretary S Krishnan said that the proposals are expected to create 1.41 lakh jobs, surpassing the scheme's target of 91,600 jobs.

What is the Electronics Component Manufacturing Scheme?

Earlier this year, the Union Cabinet approved the Electronics Component Manufacturing Scheme with a funding of ₹22,919 crore with goal to strengthen India's self-reliance in the electronics supply chain.

This scheme aims to build a strong industrial ecosystem by attracting significant investments, both global and domestic in electronics manufacturing, boosting domestic production through capacity and capability development, and integrating Indian companies into Global Value Chains (GVCs).

During this launch, the scheme is expected to attract investment worth ₹59,350 crore, resulting in production of ₹4,56,500 crore and generating additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.

The scheme offers targeted incentives to Indian manufacturers, addressing particular barriers for different categories of components and sub-assemblies, which is further expected to help them develop technological skills and realise economies of scale.

What are the types of incentives under the scheme?

The scheme offers targeted fiscal incentives for segment-specific products, these include, turnover linked incentive, capex incentive and hybrid incentive, which is a combination of both.

(With inputs from agencies.)