The Indian government has announced an ambitious electronic component manufacturing subsidy scheme with an outlay of Rs 23,000 crore, aimed at bolstering domestic production and creating jobs. The scheme targets crucial components such as display modules, camera modules, and resistors, aiming to reduce dependence on imports and increase domestic value addition.

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• The government finalizes a Rs 23,000 crore subsidy scheme to encourage electronic component manufacturing.
• Scheme to run for six years with an annual incentive payout ranging from Rs 2,300 crore to Rs 4,200 crore.
• Focus on creating 91,600 direct jobs over the six-year period.
• Components targeted include display modules, camera modules, circuit boards, and resistors.
• The scheme aims to increase domestic value addition in electronics from 15-20% to 30-40%.
• Greenfield and brownfield investments eligible, with foreign firms participating through joint ventures or technology transfer.
• Operational and capital expense-based incentives to be offered to eligible companies.
• The scheme is seen as the next step after the successful localisation of smartphone assembly under the PLI scheme.
• India faces a $100 billion domestic demand-supply gap in electronic components, with current production at only $10.75 billion.
• Component imports have been rising sharply, and the scheme aims to address the growing demand expected to reach $160 billion by 2028.