The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the production-linked incentive (PLI) scheme for non-semiconductor electronics components with an outlay of Rs 22,919 crore, Union Electronics and IT Minister Ashwini Vaishnaw said.
“Passive components are approved under the Electronics Component PLI scheme. It has a total package of Rs 22,919 crore. This will be for over six years,” he said. This is the first scheme that focuses on promoting the manufacturing of passive electronic components.
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According to Ashwini Vaishnaw, the initiative is expected to attract investment of around Rs 59,350 crore, will generate Rs 4,56,500 crore in production, and create direct employment for 91,600 people besides numerous indirect employment opportunities over its six-year duration. He said that the PLI scheme aims to strengthen domestic manufacturing, strengthen India’s electronics supply chain, and reduce dependence on imports.
He said the segment will serve the requirements of sectors like telecom, consumer electronics, automobile, medical devices, power sector, among others.
Per Electronic Industries Association of India (Elcina), non-semiconductor components production in India was around $13 billion in 2022 and is expected to reach around $20.7 billion by 2026 and around $37 billion by 2030.
The industry body has been advocating for a separate PLI scheme for non-semiconductor components since the launch of the semiconductor PLI initiative in December 2021.
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