The Union Cabinet authorised a $2.7 billion (₹22,919 crore) incentive scheme to increase electronics component production in India. The six-year initiative intends to attract $7 billion (₹59,350 crore) in investments and produce products worth ₹4.6 trillion. The government would provide subsidies of up to 50% of project expenses to encourage domestic and foreign enterprises to establish local manufacturing facilities.
Union IT Minister Ashwini Vaishnaw stated that the plan will generate 91,600 jobs by focusing on critical components such as display and camera modules, lithium-ion battery cells, printed circuit boards, and electronic enclosures. Incentives will be tied to turnover targets, similar to India’s semiconductor schemes. A capital expenditure-based incentive will also be implemented for capital goods production.
India’s overall goal is to increase value addition in electronics manufacturing by doubling it within five years. Vaishnaw emphasised that labour, customs, and tax changes are now underway. Industry leaders, including HCL co-founder Ajai Chowdhry and Zetwerk’s Josh Foulger, praised the move for its potential to attract worldwide investment and boost high-value electronics production.
India now produces $120 billion in electronics and aims to grow the industry to $500 billion by 2030.
