Electronics Components Manufacturing Scheme

Electronics Components Manufacturing Scheme: The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme to deepen India’s electronics ecosystem and strengthen its position as a global electronics manufacturing hub.

• About Electronics Components Manufacturing Scheme: Under the scheme, over 400 production units active in electronics components manufacturing.
• Export CAGR: Over 20%; Production CAGR: Over 17%.
• Objective: Strengthen deep component manufacturing, ensure value addition, and promote self-reliance in electronics production.
• Electronics Manufacturing Evolution: Shift from finished goods → sub-assemblies → component manufacturing (3rd phase).
• Coverage: A horizontal scheme benefiting sectors like: Consumer electronics → Medical devices → Automobiles → Power electronics → Electrical grids
• Focus Components: Examples: Resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films, lenses, etc.

o Active components to be covered under the India Semiconductor Mission (ISM).

• Capital Equipment Support: Scheme includes support for design and manufacture of capital tools and equipment.

o Inspired by Semiconductor Mission's success in attracting firms like Applied Materials, Lam Research.

o Companies like Linde setting up facilities in India.

• Incentive Models: Turnover-linked incentive → Capex-linked incentive → Hybrid incentive model
• Employment Requirement: Job creation is mandatory for all applicants, including: Component manufacturers & Capital equipment producers.