{"id":43675,"date":"2025-05-19T19:29:23","date_gmt":"2025-05-19T13:59:23","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=43675"},"modified":"2025-05-19T19:29:40","modified_gmt":"2025-05-19T13:59:40","slug":"70-applications-received-scheme-to-produce-electronic-components","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/19-05-2025\/70-applications-received-scheme-to-produce-electronic-components","title":{"rendered":"70 Applications Received for Scheme to Produce Electronic Components"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Science and Technology<\/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 Government of India has received 70 applications, 80% from small and medium enterprises (SMEs), for its Electronics Component Manufacturing Scheme.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Electronics Component Manufacturing Scheme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a <strong>Rs.22,919 crore<\/strong> scheme, aims to develop a robust component ecosystem by;\n<ul class=\"wp-block-list\">\n<li><strong>Attracting large investments<\/strong> (global\/domestic) in the electronics component manufacturing ecosystem,\u00a0<\/li>\n\n\n\n<li><strong>Increasing Domestic Value Addition <\/strong>(DVA) by developing capacity and capabilities, and\u00a0<\/li>\n\n\n\n<li>Integrating Indian companies with Global Value Chains (GVCs).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Salient Features of the Scheme:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The scheme <strong>provides differentiated incentives<\/strong> to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.\u00a0<\/li>\n\n\n\n<li><strong>The tenure of the scheme is six years<\/strong> with <strong>one year<\/strong> of gestation period.<\/li>\n\n\n\n<li>Payout of a part of the incentive is linked with employment targets achievement.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Component Classification under the Scheme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Category A:<\/strong> Display modules, camera module sub-assemblies.<\/li>\n\n\n\n<li><strong>Category B:<\/strong> Bare components like non-surface mount devices, multi-layered PCBs, lithium-ion cells, IT hardware products.<\/li>\n\n\n\n<li><strong>Category C:<\/strong> Flexible PCBs, SMD passive components.<\/li>\n\n\n\n<li><strong>Category D: <\/strong>Capital goods and components used in manufacturing of A, B, and C.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Progress in India&#8217;s electronics sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The domestic production<\/strong> of electronic goods has increased from <strong>Rs.1.90 lakh <\/strong>crore in FY 2014-15 to <strong>Rs.9.52 lakh crore in FY 2023-24<\/strong> at a CAGR of more than 17%.\u00a0<\/li>\n\n\n\n<li><strong>The exports <\/strong>of electronic goods have also increased from <strong>Rs.0.38 lakh crore<\/strong> in FY 2014-15 to <strong>Rs.2.41 lakh crore in FY 2023-24<\/strong> at a CAGR of more than 20%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in electronics sector\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Market Competition: <\/strong>The global electronics market is dominated by countries like <strong>China, Taiwan, USA, South Korea, Vietnam<\/strong> and <strong>Malaysia.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>Technical Skills: <\/strong>There is a lack of adequately trained technical personnel for advanced manufacturing processes.<\/li>\n\n\n\n<li><strong>Capital Intensive industry:<\/strong> Electronic manufacturing is a complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, requiring significant and sustained investments.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Make in India, Digital India, and Startup India<\/strong> are promoting domestic manufacturing and technological innovation.<\/li>\n\n\n\n<li><strong>Production Linked Incentive Scheme (PLI): <\/strong>The scheme aims to attract large investments in the mobile phone manufacturing and specified electronic components, including <strong>Assembly, Testing, Marking and Packaging (ATMP)<\/strong> units.<\/li>\n\n\n\n<li><strong>National Policy on Electronics 2019 (NPE 2019):<\/strong> It is a comprehensive framework to develop India as a global hub for electronics manufacturing.<\/li>\n\n\n\n<li><strong>Modified Electronics Manufacturing Clusters (EMC 2.0)<\/strong> develops infrastructure with common amenities and industrial clusters for electronics production.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has set a target to achieve <strong>500 billion USD<\/strong> in electronics manufacturing in value terms by<strong> 2030.<\/strong><\/li>\n\n\n\n<li>To enhance competitiveness, India needs to localize high-tech components, <strong>strengthen design capabilities through R&amp;D investments<\/strong>, and forge strategic partnerships with global technology leaders.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/70-applications-received-for-scheme-to-produce-electronic-components\/article69591205.ece\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The Government of India has received 70 applications, 80% from small and medium enterprises (SMEs), for its Electronics Component Manufacturing Scheme.<\/li>\n<p><\/p>\n<h3><strong>Government initiatives<\/strong><\/h3>\n<li class=\"ms-5\">Make in India, Digital India, and Startup India are promoting domestic manufacturing and technological innovation.<\/li>\n<li class=\"ms-5\">Production Linked Incentive Scheme (PLI): The scheme aims to attract large investments in the mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.<\/li>\n<li class=\"ms-5\">National Policy on Electronics 2019 (NPE 2019): It is a comprehensive framework to develop India as a global hub for electronics manufacturing.<\/li>\n<li class=\"ms-5\">Modified Electronics Manufacturing Clusters (EMC 2.0) develops infrastructure with common amenities and industrial clusters for electronics production.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/19-05-2025\/70-applications-received-scheme-to-produce-electronic-components\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/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-43675","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\/43675","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=43675"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43675\/revisions"}],"predecessor-version":[{"id":43692,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43675\/revisions\/43692"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=43675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=43675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=43675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}