Cabinet approves sops to boost electronics manufacturing

Three schemes, with total outlay of ₹48,000 crore, will create about 20 lakh jobs.

March 21, 2020 07:04 pm | Updated December 03, 2021 06:47 am IST - New Delhi

Union Communications Minister Ravi Shankar Prasad. Photo: File

Union Communications Minister Ravi Shankar Prasad. Photo: File

In a bid to boost large-scale electronics manufacturing in India, the Union Cabinet approved three schemes, including a production-linked incentive scheme, with a total outlay of almost ₹48,000 crore.


“The three schemes together will enable large-scale electronics manufacturing, a domestic supply chain ecosystem of components and a state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners,” Minister of Electronics and IT Ravi Shankar Prasad said on Saturday.

The schemes are expected to attract new investments worth at least ₹50,000 crore in the sector, while generating more than five lakh direct and 15 lakh indirect jobs.

The production-linked incentive scheme aims to attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units, at a budgetary outlay of ₹40,995 crore for five years.

The scheme will offer an incentive of 4-6% on incremental sales of goods manufactured in India and is expected to create a total of 8 lakh jobs. 

“Domestic value addition for mobile phones is expected to rise to 35-40% by 2025 from the current 20—25% due to the impetus provided by the scheme,” an official statement said.

For the ‘Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors’ the outlay has been kept at ₹3,285 crore over eight years and is expected to create about 6 lakh jobs. “The scheme will provide a financial incentive of 25% on capital expenditure for the identified list of electronic goods... and will be applicable to investments in new units and expansion of capacity/ modernisation and diversification of existing units.”

The third scheme, Electronics Manufacturing Clusters (EMC) 2.0, aims at creating quality infrastructure with a minimum area of 200 acres along with industry-specific facilities such as common facility centres, ready-built factory sheds/ plug-and-play facilities at an outlay of ₹3,762.25 crore over eight years. 

The scheme is expected to create about 10 lakh jobs.

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