Component PLI to further boost electronics exports, generate jobs

New Delhi, April 9: As smartphone exports surpassed Rs 2 lakh crore in FY25, with iPhones alone accounting for approximately Rs 1.5 lakh crore, the IT Ministry has notified the Rs 22,919 crore Electronics Components Manufacturing Scheme (ECMS), marking a significant step towards strengthening India's position as a global hub for electronics manufacturing.

According to Union Minister Ashwini Vaishnaw, the notification of the Electronics Components Manufacturing Scheme, is in continuation of the recent Cabinet decision.

"Our government has always been open-minded, consultative, and inclusive. We take everyone's views into account before finalising any law or policy," he said.

Over the past decade, electronics production has grown five-fold and exports have grown more than six-fold, with export CAGR exceeding 20 per cent and production CAGR over 17 per cent.

"Within a short time, the electronics manufacturing ecosystem -- comprising component manufacturers and a diverse range of players -- has developed substantially. Today, there are more than 400 production units, both big and small, manufacturing a variety of components," said Vaishnaw.

Reflecting global industry trends, the Union Minister said that India's journey in electronics manufacturing has evolved through distinct phases -- beginning with finished goods, progressing to sub-assemblies, and now entering the critical phase of deep component manufacturing.

The sector is steadily advancing into this third phase, which marks a significant leap in value addition, self-reliance, and ecosystem depth.

Outlining the structure of the scheme, the minister said that it is designed as a horizontal initiative with benefits spanning multiple sectors such as consumer electronics, medical devices, automobiles, power electronics, and electrical grids, thereby creating a strong multiplier effect across the economy.

The scheme focuses particularly on passive electronic components, which will be supported under the new initiative. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM). The indicative list of passive components includes resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films, lenses, and many more--underscoring the depth and breadth of the scheme.

The scheme will also support the design and manufacturing of capital equipment used in electronics production. Employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers.

Reader Comments

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Rahul K.

This is fantastic news for India's manufacturing sector! The growth in electronics exports is impressive - from Rs 40k crore to Rs 2 lakh crore in just a decade. Can't wait to see more Made in India products globally 🇮🇳

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Priya M.

While I appreciate the government's efforts, I hope they ensure fair wages and working conditions in these new manufacturing units. Job creation is great, but quality jobs matter more than quantity.

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Arjun S.

The focus on passive components is smart - these are the building blocks of electronics. If we can master this, it'll reduce our dependence on imports significantly. Big win for Atmanirbhar Bharat!

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Sanjana T.

As an engineering student, this gives me hope for better career opportunities in electronics manufacturing. The component ecosystem development means we won't have to look abroad for high-tech jobs 🤞

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Vikram P.

The multiplier effect across sectors is what excites me most. This isn't just about phones - it'll boost medical devices, automotive, power grids... the whole tech ecosystem gets stronger!

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Neha R.

I wonder how this will affect product prices. In theory, local manufacturing should make electronics cheaper, but will companies pass on the savings? Hope there's some price monitoring mechanism too.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.