Electronics Components Manufacturing Scheme

Electronics Components Manufacturing Scheme Latest News

The Ministry of Electronics and Information Technology (MeitY) recently notified the Electronics Components Manufacturing Scheme, marking a significant step towards strengthening India’s position as a global hub for electronics manufacturing.

About Electronics Components Manufacturing Scheme

• It is the first dedicated production-linked incentive (PLI) scheme to promote the manufacturing of select passive electronic components, including resistors, capacitors, speakers, microphones, special ceramics, relays, switches, and connectors. 
• The scheme will offer three incentive structures: 
  • Turnover-linked incentive (based on revenue)
  • Capex-linked incentive (for investments in plants & machinery)
  • Hybrid incentive model (a combination of both)
• Incentives for incremental investments and turnover range from 1–10% depending on the year and the component.
• Employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers. Thus, the scheme not only boosts manufacturing but also creates skilled jobs.
• This scheme has a tenure of six years, with a one-year gestation period.
• The scheme focuses particularly on passive electronic components. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM).
• This scheme is set to benefit a number of industries, such as automobiles, consumer electronics, and electronics.

Electronics Components Manufacturing Scheme FAQs

Q1. What is the main objective of the Electronics Components Manufacturing Scheme?

Ans. To promote the manufacturing of select passive electronic components.

Q2. What is the duration of the Electronics Components Manufacturing Scheme?

‹ ›

Ans. 6 years

Q3. What is the gestation period of the Electronics Components Manufacturing Scheme?

Ans. 1 year

Source: PIB