What’s in Today’s Article?

• Electronics Manufacturing India Latest News
• India’s Progress in Electronics Manufacturing Value Addition
• Performance and Future of PLI Schemes
• Electronics Manufacturing India FAQs

Electronics Manufacturing India Latest News

• Global smartphone giants like Apple and Samsung have set up production bases in India due to a large talent pool, government subsidies, and the need to diversify from China. 
• While India has successfully localized smartphone assembly, the government is now focusing on increasing domestic value addition. 
• To achieve this, it has launched targeted subsidy schemes, including the ₹76,000 crore India Semiconductor Mission and a ₹23,000 crore scheme for passive electronic components, alongside existing PLI schemes.
• The goal is to reduce import dependence—especially on China—boost local manufacturing across all layers of electronics, and create high-quality jobs. 
• Currently, India’s local value addition is 15–20%, with plans to double it in the coming years (China stands at 38%). However, India's trade deficit with China hit a record $100 billion in 2024–25, highlighting the urgency of these efforts.

India’s Progress in Electronics Manufacturing Value Addition

• India is rapidly becoming a global manufacturing hub for electronics. 

Goal to Increase Domestic Value Addition

• The government’s new components policy aims to raise local value addition from 15-16% to 40-50%, further boosting the sector's growth and reducing import dependence.

Mobile Phone Exports Growth

• Mobile phone exports from India have surged 77 times over the past decade, showcasing the country's increasing role in global electronics manufacturing.

Growth in Electronics Exports

• India’s electronics exports have been growing at a robust CAGR of 26% from FY16 to FY25, signaling a growing presence in the global market.

Domestic Production of Key Components

• India has reduced its reliance on mobile PCBAs, with imports dropping from Rs 300 billion in FY18 to near zero by FY24.

India’s Position in Mobile Phone Manufacturing

• India is now the world’s second-largest mobile phone producer, with nearly 99% of the phones sold domestically being manufactured locally.

Electronics Components Manufacturing Scheme

• Recently, the IT Ministry has launched a ₹22,919 crore incentive scheme for electronics components aimed at deepening India’s electronics manufacturing capabilities. 
• This builds on the earlier PLI schemes which primarily targeted smartphone and computer assembly.

Focus on Component-Level Manufacturing

• The six-year scheme targets the domestic production of key components such as display modules, camera sub-assemblies, PCBs, lithium cell enclosures, resistors, capacitors, and ferrites. 
• These are essential for smartphones, laptops, and household appliances.

Reducing Dependence on China

• As local assembly of devices has grown, India’s reliance on China for internal components has increased. 
• The new scheme aims to reduce this dependence by fostering domestic component manufacturing.

Job Creation and Investment Goals

• The scheme is expected to:
  • Create at least 91,600 direct jobs
  • Generate ₹4.56 lakh crore worth of production
  • Attract ₹59,350 crore in incremental investment
• Annual subsidies will be linked to the number of jobs created by participating companies.

Performance and Future of PLI Schemes

• Success of the Smartphone PLI Scheme
  • The smartphone PLI scheme has been highly successful among the 14 programs launched in 2020. 
  • Key achievements as of February 2025 include:
    • Cumulative investment: ₹10,905 crore
    • Cumulative production: ₹7,15,823 crore
    • Cumulative exports: ₹3,90,387 crore
    • Direct jobs created: 1,39,670
• Performance of the IT Hardware PLI Scheme
  • The IT hardware PLI scheme, initially slow, gained momentum in 2023 with an increased allocation of ₹17,000 crore. 
  • Key figures for laptops and computers under the scheme:
    • Cumulative production: ₹10,365 crore
    • Cumulative investment: ₹522 crore
    • Direct jobs created: 5,132
• Government Support and Distribution of Funds
  • The government has disbursed nearly $1 billion (₹8,700 crore) between 2022-2025 under the smartphone PLI scheme, with major contract manufacturers like Foxconn, Tata Electronics, and Pegatron receiving over 75% of the funds.
• Future Directions for PLI Schemes
  • With the current schemes nearing their sunset in 1-3 years, the government is considering extending incentives to include metrics beyond incremental sales, such as domestic value addition and incremental exports, to further strengthen the sector.

Electronics Manufacturing India FAQs

Q1. What is India’s current value addition in electronics manufacturing?

Ans. India’s value addition is around 15–20%, with efforts underway to double it in the coming years through new policies.

Q2. Why is India reducing electronics import dependence on China?

Ans. India’s electronics trade deficit with China hit $100 billion; cutting imports ensures economic security and job creation.

Q3. What does the new ₹23,000 crore scheme focus on?

Ans. It targets domestic production of electronic components like PCBs, resistors, display modules, and lithium cell enclosures.

Q4. How successful is the smartphone PLI scheme?

Ans. With ₹7.15 lakh crore in production and over 1.3 lakh jobs, the smartphone PLI scheme has exceeded expectations.

Q5. What’s next for India’s PLI schemes?

Ans. The government plans to shift incentives towards domestic value addition and exports to ensure long-term electronics growth.

Source: IE | ET

What’s in Today’s Article?

• Jal Jeevan Mission Latest News
• Introduction
• Overview of Jal Jeevan Mission
• Current Funding Status and Concerns
• Role of States and Local Governance
• Challenges in Last-Mile Delivery
• Policy Outlook and Next Steps
• Jal Jeevan Mission FAQs

Jal Jeevan Mission Latest News

• The Jal Shakti Ministry has demanded Rs 2.79 lakh crore Central funds to complete the Jal Jeevan Mission Scheme.

Introduction

• Launched in August 2019, the Jal Jeevan Mission (JJM) is the Government of India’s ambitious initiative to provide Functional Household Tap Connections (FHTCs) to every rural household. 
• Spearheaded by the Ministry of Jal Shakti, the mission aims to ensure equitable access to safe and adequate drinking water to all rural households by 2024. 
• In the years since its launch, JJM has made remarkable strides but now faces funding constraints as it nears its final implementation phase.

Overview of Jal Jeevan Mission

• Vision and Objectives
  • The mission’s core objective is to ensure “Har Ghar Jal”, water to every household, by provisioning safe and adequate drinking water through individual tap connections by 2024. It aims to:
    • Provide 55 litres per capita per day (lpcd) of water
    • Promote sustainable water supply systems
    • Ensure community participation and transparency
    • Integrate source sustainability and greywater management
• Progress and Achievements So Far
  • As of March 31, 2025, nearly 14.56 crore rural households (about 73%) have been provided with tap water connections under JJM.
  • 13 states and Union Territories, including Goa, Haryana, Gujarat, and Telangana, have achieved 100% coverage.
  • 2.12 lakh villages have been declared “Har Ghar Jal certified” where every household has a functional tap water connection.
  • 6.2 lakh village-level water and sanitation committees have been formed to ensure local involvement and monitoring.

Current Funding Status and Concerns

• Demand for Additional Funds
  • According to media reports, the Ministry of Jal Shakti has sought an additional ₹2.79 lakh crore from the 16th Finance Commission to sustain and complete the Jal Jeevan Mission. 
  • However, the Finance Commission’s interim panel has only cleared a support of ₹1.42 lakh crore, roughly half the requested amount.
• Breakdown of Financial Requirement
  • The original outlay for the mission was ₹3.60 lakh crore (Centre and State combined).
  • As of now, the Centre has allocated around ₹1.58 lakh crore and disbursed ₹1.12 lakh crore.
  • The demand for additional funds stems from increased costs due to inflation, coverage expansion, and the need for operation and maintenance systems.
• Implications of Funding Gap
  • The reduced approval of funds could delay coverage in lagging states such as Uttar Pradesh, West Bengal, and Rajasthan, all of which are still under 60% coverage. 
  • It also raises concerns over sustainability, particularly for maintenance and source sustainability projects post-2024.

Role of States and Local Governance

• A defining feature of JJM is its emphasis on community participation. 
• Village Water and Sanitation Committees (VWSCs) are responsible for operation, maintenance, and regular monitoring. 
• Capacity-building efforts include training over 4 lakh women in water quality testing using field test kits. 
• States are also required to prepare village action plans (VAPs) to ensure decentralised planning and execution.

Challenges in Last-Mile Delivery

• Geographical Diversity: Hilly and tribal regions such as those in the Northeast and Chhattisgarh pose logistical challenges.
• Water Source Sustainability: In drought-prone areas, source depletion remains a critical issue.
• Human Resource Gaps: The mission has faced shortfalls in trained manpower at the village and block levels for technical and managerial roles.
• Water Quality Issues: Fluoride, arsenic, and iron contamination continue to affect the potability of water in certain states.

Policy Outlook and Next Steps

• Focus Beyond 2024
  • Even though 2024 was the initial deadline, the government now appears focused on strengthening long-term water supply infrastructure. Key next steps include:
    • Setting up Water Quality Monitoring and Surveillance systems.
    • Implementing greywater reuse mechanisms.
    • Transitioning to lifecycle-based budgeting for O&M.
    • Encouraging convergence with MGNREGA and SBM 2.0 for integrated water security.
• Strategic Recommendations
  • Increase central allocations through alternate routes such as multilateral aid or CSR partnerships.
  • Prioritise lagging states with targeted assistance.
  • Improve convergence with health and nutrition schemes to reinforce the water-health link.

Jal Jeevan Mission FAQs

Q1. What is the core goal of the Jal Jeevan Mission?

Ans. To provide tap water supply to every rural household by 2024.

Q2. How many households have been connected under JJM so far?

Ans. Over 14.5 crore rural households have functional tap connections as of March 2025.

Q3. Why did the Jal Shakti Ministry seek more funds recently?

Ans. Due to rising costs, wider coverage needs, and post-implementation sustainability efforts.

Q4. Which states have achieved 100% tap water connectivity?

Ans. Goa, Haryana, Gujarat, and Telangana are among the states with full coverage.

Q5. What is the role of Village Water and Sanitation Committees under JJM?

Ans. VWSCs handle local implementation, maintenance, and monitoring of water supply systems.

Source: IE | PIB

What’s in Today’s Article?

• India Food Inflation Latest News
• Food Inflation Impact: A Chain Reaction
• Easing Pressure on Food Inflation
• Wheat Relief: A Turnaround in 2024-25
• Future Outlook: Signs of Economic Relief
• India Food Inflation FAQs

India Food Inflation Latest News

• The El Niño event from April 2023 to May 2024 was both prolonged and intense, with Pacific Ocean Sea surface temperatures rising up to 2°C above the 30-year average—far exceeding the 0.5°C threshold for El Niño classification. 
• This strong El Niño led to deficient rainfall across much of India during the 2023-24 monsoon, post-monsoon, and winter seasons. It also delayed winter onset, caused warmer-than-normal temperatures, and triggered heat waves from late March to mid-June 2024.
• As a result, 2023-24 was a below-average agricultural year, with both kharif and rabi crops performing poorly.

Food Inflation Impact: A Chain Reaction

• The 2023-24 agricultural year was disappointing, with subpar kharif and rabi harvests due to an unusually long and strong El Niño. 
• This weather anomaly disrupted rainfall patterns, directly affecting farm productivity.

Surge in Food Prices

• The poor crop yields triggered a sharp rise in food inflation. 
• Between July 2023 and December 2024, the consumer food price index rose by an average of over 8.5%, marking one of India’s longest food inflation spells in recent times.

Strain on Household Budgets

• High food prices forced households to divert a larger share of their income towards essentials, reducing their ability to spend on non-food items.

Impact on Consumption

• Consumer demand, especially for fast-moving consumer goods, was hit. 
• Hindustan Unilever recorded modest sales volume growth, with figures dropping to 0% by the last quarter of 2024.

The El Niño Effect

• El Niño’s disruption of global weather patterns reduced rainfall across India, damaging crop output, inflating food prices, and ultimately squeezing household consumption.

Easing Pressure on Food Inflation

• Retail food inflation eased significantly to 2.7% year-on-year in March 2025 — the lowest since November 2021 — offering relief after an extended period of high prices.

Agricultural Recovery in 2024-25

• The drop in inflation was driven by a recovery in farm output during 2024-25, supported by a favorable monsoon and the absence of disruptive weather events like El Niño.

Mild La Niña Influence

• While a full-fledged La Niña didn’t materialize, mild cooling of sea surface temperatures in the Pacific (–0.5 to –0.6°C during Nov–Feb) helped stabilize weather patterns. 
• This contributed to a normal winter and a healthy rabi crop.

Improved Supply, Lower Prices

• The improved kharif and rabi harvests began reaching markets, aligning with the softening of food inflation, bringing much-needed relief to both consumers and the economy.

Wheat Relief: A Turnaround in 2024-25

• As of April 1, 2024, government wheat stocks had fallen to 7.5 million tonnes—the lowest for that date since 2008. 
• The 2023-24 wheat crop struggled in central India due to delayed winter and poor sunshine in January, while only northern regions saw good yields.
• Due to weak overall production, wheat prices remained elevated throughout 2023 and early 2024. The new marketing season also began with uncomfortable stock levels.

Bumper Crop in 2024-25

• This year’s wheat harvest in central India has been strong, thanks to stable weather and the absence of fog or extreme temperature swings. 
• Although yields in northern states are slightly lower than last year, national output is expected to be higher.

Favorable Weather Aided Grain Quality

• A cool March allowed proper grain filling.

New High-Yielding Varieties Boost Output

• Improved wheat varieties like HD-3386, DW-327, PBW-826, and PBW-872 played a crucial role in enhancing grain weight and overall yield, especially in Punjab and Haryana.

Market Signals a Good Harvest

• Prices of fair average quality wheat have dropped to ₹2,400–2,500 per quintal in MP’s markets, below the ₹3,000–3,100 range three months ago and closer to the MSP of ₹2,425 — indicating ample supply.

Stock Rebuilding Expected

• With strong procurement expected this season, wheat stocks are likely to be replenished, supplementing already high levels of rice in government granaries.

Future Outlook: Signs of Economic Relief

• The India Meteorological Department (IMD) has forecast an “above normal” southwest monsoon for June–September 2025, with rainfall expected at 105% of the long-period average. 
• This is likely under ENSO-neutral conditions, with neither El Niño nor La Niña active.

Potential for Lower Food Inflation

• A good monsoon would support healthy agricultural production, reinforcing the recent softening of food inflation and ensuring price stability in essential commodities.

Favorable External Factors

• Falling global crude oil prices (Brent below $68 per barrel) and a weakening U.S. dollar (from ₹87.5 to ₹85.4) are reducing import costs and easing subsidy burdens for the Indian government.

Positive Terms of Trade Shock

• The combination of lower food prices, cheaper oil imports, and favorable currency movement presents a positive terms of trade shock. This benefits:
  • Households, by improving purchasing power,
  • Businesses, through reduced input costs, and
  • The Government, by lowering subsidy expenditures.

Boost to Consumption

• With lower inflationary pressure and improved disposable income, household consumption could see a rise. 
• This may help offset headwinds from global economic uncertainties, including disruptions from U.S. tariff actions under President Donald Trump.

India Food Inflation FAQs

Q1. What caused high food inflation in 2023-24?

Ans. A prolonged El Niño disrupted monsoons, reduced crop yields, and pushed food inflation above 8.5% for over a year.

Q2. Why is food inflation easing in 2025?

Ans. Favorable weather and improved harvests in 2024-25 eased supply constraints, bringing retail food inflation down to 2.7% in March.

Q3. How did wheat production recover in 2024-25?

Ans. Stable weather, improved grain varieties, and proper winter timing boosted wheat yields, especially in central India.

Q4. What is the 2025 monsoon forecast by IMD?

Ans. The India Meteorological Department forecasts an above-normal monsoon with 105% rainfall under ENSO-neutral conditions.

Q5. How will falling crude oil prices help India’s economy?

Ans. Lower oil prices reduce import costs, ease government subsidy burdens, and improve purchasing power for consumers.

Source: IE | BW