{"id":40072,"date":"2025-03-29T19:49:48","date_gmt":"2025-03-29T14:19:48","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=40072"},"modified":"2025-04-01T11:10:56","modified_gmt":"2025-04-01T05:40:56","slug":"union-cabinet-approved-electronics-component-manufacturing-scheme","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/29-03-2025\/union-cabinet-approved-electronics-component-manufacturing-scheme","title":{"rendered":"Union Cabinet Approved Electronics Component Manufacturing Scheme"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet chaired by the PM approved the <strong>Electronics Component Manufacturing Scheme <\/strong>with a funding of Rs.22,919 crore to make India Atmanirbhar in the electronics supply chain.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Objectives:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Develop a robust component ecosystem by attracting both global and domestic investments.<\/li>\n\n\n\n<li>Increase Domestic Value Addition (DVA) through capacity and capability development.<\/li>\n\n\n\n<li>Integrate Indian companies into Global Value Chains (GVCs).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Expected Outcomes:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Attract an investment of Rs.59,350 crore.<\/li>\n\n\n\n<li>Result in production of Rs.4,56,500 crore.<\/li>\n\n\n\n<li>Generate 91,600 direct jobs and numerous indirect jobs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Duration: <\/strong>Tenure of six years with a one-year gestation period.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Electronics Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The electronics sector encompasses<strong> the design, manufacturing, and marketing of electronic components and systems<\/strong>.&nbsp;<\/li>\n\n\n\n<li><strong>Electronics <\/strong>is one of the highest-traded and fastest-growing industries globally and is expected to play a pivotal role in shaping the global economy.\n<ul class=\"wp-block-list\">\n<li>Since electronics permeates all sectors of economy it has economic and strategic importance.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"9b7a3c\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"304\" height=\"580\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/different-segments-in-electronics.png\" alt=\"different segments in electronics\" class=\"has-transparency wp-image-40086\" style=\"--dominant-color: #9b7a3c; width:212px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/different-segments-in-electronics.png 304w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/different-segments-in-electronics-157x300.png 157w\" sizes=\"auto, (max-width: 304px) 100vw, 304px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Electronic Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Domestic Production:<\/strong> It has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%.&nbsp;<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"838ea4\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"379\" height=\"421\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/domestic-production-in-electronics-sector.png\" alt=\"domestic production in electronics\" class=\"has-transparency wp-image-40092\" style=\"--dominant-color: #838ea4; width:347px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/domestic-production-in-electronics-sector.png 379w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/domestic-production-in-electronics-sector-270x300.png 270w\" sizes=\"auto, (max-width: 379px) 100vw, 379px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Exports: <\/strong>The exports of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%.\n<ul class=\"wp-block-list\">\n<li>India is the <strong>second largest mobile phone producer <\/strong>in the world.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India&#8217;s semiconductor ecosystem<\/strong> has gained significant momentum, with five landmark projects receiving approval with a total combined investment nearing Rs 1.52 lakh crores.<\/li>\n\n\n\n<li><strong>Future Projections:<\/strong> It indicates that India\u2019s electronics production will reach <strong>USD 300 billion by 2026.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dependence on Imports: <\/strong>High reliance on imported components, especially semiconductors, increases costs and supply chain vulnerabilities.<\/li>\n\n\n\n<li><strong>Infrastructure Gaps: <\/strong>Inadequate infrastructure for large-scale manufacturing and logistics hampers efficiency.<\/li>\n\n\n\n<li><strong>Skilled Labor Shortage: <\/strong>Limited availability of skilled workers for advanced manufacturing processes and R&amp;D.<\/li>\n\n\n\n<li><strong>High Capital Investment: <\/strong>Significant investment required for setting up world-class manufacturing facilities, making entry challenging for new players.<\/li>\n\n\n\n<li><strong>Technology Gaps: <\/strong>Lack of cutting-edge technology and innovation in certain segments of the electronic value chain.<\/li>\n\n\n\n<li><strong>Competition from Global Players: <\/strong>Intense competition from established global electronics manufacturers and countries with lower production costs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government schemes for the Electronics boom in India:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Make in India: launched in 2014, <\/strong>aimed at boosting India&#8217;s manufacturing sector and economic growth.\n<ul class=\"wp-block-list\">\n<li>Transform India into a global hub for design and manufacturing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Phased Manufacturing Programme (PMP): <\/strong>Launched in 2017, aimed to promote domestic value addition in mobile phones and their parts.\n<ul class=\"wp-block-list\">\n<li>Increased investment and set up significant manufacturing capacities in India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme: <\/strong>Introduced in 2020, aimed to boost domestic manufacturing in mobile phones, electronic components, and semiconductor packaging.\n<ul class=\"wp-block-list\">\n<li><strong>Incentives: <\/strong>3% to 6% on incremental sales (over base year) for eligible companies.<\/li>\n\n\n\n<li><strong>Duration: 5 years.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"bcb5b1\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"534\" height=\"369\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/sectors-under-production-linked-incentive-scheme.png\" alt=\"sectors under production linked incentive scheme\" class=\"has-transparency wp-image-40093\" style=\"--dominant-color: #bcb5b1; width:492px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/sectors-under-production-linked-incentive-scheme.png 534w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/03\/sectors-under-production-linked-incentive-scheme-300x207.png 300w\" sizes=\"auto, (max-width: 534px) 100vw, 534px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Semicon India Program: <\/strong>Launched in 2021 with a financial outlay of \u20b976,000 crore, it is structured to promote the domestic semiconductor industry through incentives and strategic partnerships.\n<ul class=\"wp-block-list\">\n<li>At Global Investors Summit 2025, it was announced that India\u2019s first indigenous semiconductor chip will be ready for production by 2025.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): <\/strong>The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products.<\/li>\n\n\n\n<li><strong>Increased Budget:<\/strong> Allocation for electronics manufacturing rose from \u20b95,747 crore (2024-25) to \u20b98,885 crore (2025-26), highlighting the government&#8217;s commitment to industrial growth.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s rapid transformation into a global electronics manufacturing hub is a testament to the success of the Make in India initiative.&nbsp;<\/li>\n\n\n\n<li>With numerous schemes to support the manufacturing processes in India, the country has significantly boosted local manufacturing, exports, and investment.&nbsp;<\/li>\n\n\n\n<li>India aims for USD 300 billion in electronics production by 2026 that will position it as a&nbsp; major hub in the electronics and semiconductor industries.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=2116172\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet chaired by the PM approved the Electronics Component Manufacturing Scheme with a funding of Rs.22,919 crore to make India Atmanirbhar in the electronics supply chain.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-40072","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/40072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=40072"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/40072\/revisions"}],"predecessor-version":[{"id":40094,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/40072\/revisions\/40094"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=40072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=40072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=40072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}