New electronics component PLI to boost local manufacturing, create jobs: Industry

IANS April 9, 2025 286 views

India has launched an ambitious Electronics Component Manufacturing Scheme to transform its electronics manufacturing landscape. The government's Rs 22,919 crore initiative aims to generate massive production and create thousands of jobs. By offering targeted financial incentives, the scheme seeks to reduce import dependency and build a globally competitive ecosystem. This strategic move could potentially position India as a significant player in the global electronics manufacturing value chain.

"The ECMS will build on that momentum and help realise the dream of $500 billion in electronics production" - Pankaj Mohindroo, ICEA Chairman
New electronics component PLI to boost local manufacturing, create jobs: Industry
New Delhi, April 9: India’s electronics manufacturing sector has received a major boost with the government notifying the much-awaited ‘Electronics Component Manufacturing Scheme' (ECMS), top industry bodies said on Wednesday.

Key Points

1

Rs 22,919 crore scheme aims to strengthen domestic electronics manufacturing

2

Incentives ranging 4-10% to attract investments

3

Reduces import dependency and enhances global competitiveness

The scheme marks a turning point for strengthening India’s component manufacturing ecosystem and increasing domestic value addition.

With a financial outlay of Rs 22,919 crore over six years, ECMS aims to generate production worth Rs 4.56 lakh crore, attract investments of Rs 59,350 crore and create nearly 91,600 direct jobs.

Applications for the scheme will open from May 1 for an initial period of three months and can be reopened based on industry response.

The India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said this scheme would not only deepen India’s electronics supply chain but also help build strong Indian champions that can compete globally.

“The electronics sector has already made a mark, especially in mobile manufacturing. The ECMS will build on that momentum and help realise the dream of $500 billion in electronics production,” Mohindroo said, adding that India’s current strength in mobile phone exports proves the country’s capability to build a globally competitive ecosystem.

The ECMS scheme includes incentives such as turnover-linked support ranging from 4-10 per cent, a 25 per cent capex incentive, and a hybrid option for specific components.

These incentives are designed to address challenges like high capital requirements, long gestation periods, and scale limitations that have slowed growth in the past.

The SEMI IESA President Ashok Chandak lauded the scheme, saying it addresses long-standing issues in the components and sub-assembly space.

“The financial incentives, based on the unique needs of each segment, would drive domestic and foreign investment into the sector, reduce India’s dependency on imports, and integrate the country’s manufacturing ecosystem into the global value chain,” he said.

Chandak added that the scheme is expected to generate sustainable development, create massive job opportunities, and increase India’s competitiveness in global electronics trade.

Reader Comments

R
Rahul K.
This is fantastic news! 👏 Finally some concrete steps to boost local manufacturing. The job creation potential is huge - exactly what our economy needs right now. Hope the implementation is as good as the plan sounds.
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Priya M.
While I appreciate the initiative, I hope they've considered environmental impacts too. Electronics manufacturing can be resource-intensive. Would love to see sustainability requirements built into the incentives.
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Vikram S.
The ₹4.56 lakh crore production target is ambitious but achievable if the incentives are structured right. Mobile manufacturing success gives me hope! #MakeInIndia
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Anjali T.
As someone working in electronics, this is game-changing! The capex incentive will help smaller players enter the market. Finally we might reduce our dependence on Chinese components.
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Sanjay R.
Good move, but implementation will be key. Previous schemes often got stuck in red tape. Hope they've simplified the application and approval process this time.
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Neha P.
Excited about the job opportunities! 🤩 My brother just graduated in electronics engineering - perfect timing. Hope the training infrastructure keeps pace with these manufacturing plans.

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

Tags:
Electronics Manufacturing PLI Scheme Indian Manufacturing Electronics Components Job Creation India Electronics Policy
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