On Friday, the Indian government, led by Prime Minister Narendra Modi, took a significant step to boost the electronics sector by approving a production-linked incentive (PLI) scheme specifically targeting non-semiconductor electronic components. The announcement, made by Union Electronics and IT Minister Ashwini Vaishnaw, revealed an ambitious investment plan of Rs 22,919 crore designed to enhance domestic manufacturing over the next six years.
A New Era for Passive Components
This newly approved PLI scheme is particularly noteworthy as it focuses on the production of passive electronic components, a crucial segment of the electronics industry. Minister Vaishnaw emphasized that this initiative is the first of its kind dedicated to fostering the growth of such components, which play a vital role in various technological applications.
Economic Impact and Job Creation
The PLI scheme is set to attract a staggering Rs 59,350 crore in investments. According to estimates, this initiative is expected to generate an impressive Rs 4,56,500 crore in production value and create direct employment opportunities for 91,600 individuals. Furthermore, the program is likely to catalyze numerous indirect jobs, significantly impacting the Indian economy.
- Investment: Rs 59,350 crore
- Production Value: Rs 4,56,500 crore
- Direct Jobs Created: 91,600
Strengthening India’s Electronics Supply Chain
Vaishnaw pointed out that the scheme aims to bolster domestic manufacturing capabilities, thereby reducing India’s reliance on imported electronics components. The initiative will support various sectors, including telecommunications, consumer electronics, automotive, medical devices, and the power sector.
Growth Projections for Non-Semiconductor Components
According to the Electronic Industries Association of India (Elcina), the production of non-semiconductor components in India stood at approximately $13 billion in 2022. Projections indicate that this figure could rise to around $20.7 billion by 2026 and soar to $37 billion by 2030. Elcina has been advocating for a dedicated PLI scheme for non-semiconductor components since the semiconductor PLI initiative was launched in December 2021.
This strategic investment and focus on non-semiconductor electronics mark a pivotal moment for India, positioning the nation as a key player in the global electronics supply chain. As the government rolls out this PLI scheme, the future of India’s electronics manufacturing looks promising and poised for growth.
