Union Cabinet approves Electronics Component Manufacturing Scheme with funding of ₹ 22919 crore | Current Affairs | Vision IAS
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Union Cabinet approves Electronics Component Manufacturing Scheme with funding of ₹ 22919 crore

Posted 29 Mar 2025

2 min read

The scheme aims to develop a robust component ecosystem, domestic value addition, and integrate Indian companies with global value chains.

Salient Features of the Scheme

  • It will provide differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components.
    • The targeted segments will include sub-assemblies (Display and camera module), Bare components like Non-Surface Mount Devices, etc. 
  • Tenure: 6 years with one year gestation period.
  • Payout of a part of the incentive is linked with employment targets achievement.

Importance of Electronic Sector

  • Strategic: 
    • National Security: India’s first ever national security semiconductor fabrication plant will be set up under India-US joint cooperation to produce chips for military hardware. 
    • Supply Chain resilience: Over half of India’s import ($89.8 bn in FY23) comes from China and Hong Kong, highlighting the need for diversification and building domestic manufacturing capacities.
  • Economic:
    • Export Growth: It rose from 0.38 lakh crores (FY14-15) to 2.41 lakh crores (FY23-24) with a compound annual growth rate (CAGR) of more than 20%. 
    • Domestic Production Growth: It increased from 1.9 lakh crores (FY14-15) to 9.52 lakh crores (FY23-24) with a CAGR of more than 17%. 
  • Tags :
  • Supply Chain Resilience
  • Electronics Component Manufacturing Scheme
  • Global Value Chains
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