Government Unveils Rs. 20,000 Crore PLI Scheme

The Government of India is actively engaging with industry stakeholders to devise a production-linked incentive (PLI) scheme aimed at bolstering electronics components manufacturing. With an anticipated budget allocation of approximately Rs 20,000 crore, the Ministry of Electronics and IT (Meity) is working to secure funding for the initiative within the upcoming budget presentation scheduled for July. While the final amount is subject to ongoing consultations, industry experts project that the figure may surpass Rs 20,000 crore to effectively foster an integrated ecosystem.

Meity is soliciting detailed insights from industry players regarding India's historical import reliance on electronic components over the past five years, juxtaposed with domestic production figures during the same period. This information will inform strategic decisions in achieving self-reliance objectives. To facilitate the formulation of a comprehensive roadmap, electronics components are being categorized based on factors such as capital intensity, labor requirements, scalability, and technological sophistication. Industry stakeholders are encouraged to furnish a comprehensive list of electronic components, thereby facilitating targeted interventions to expand domestic manufacturing capabilities.

Moreover, the government seeks to identify challenges and bottlenecks hindering local manufacturing endeavors, emphasizing the need for a nuanced understanding of the sector's intricacies. Additionally, insights into critical sub-assemblies and essential capital equipment will inform targeted interventions requiring government support to fortify the component manufacturing and semiconductor ecosystem.

With a strategic vision to propel the electronics manufacturing sector to new heights, the government has set an ambitious target of USD 300 billion in electronics manufacturing by 2026, with an earmarked allocation of USD 18 billion for components. This concerted effort underscores India's commitment to fostering innovation, self-sufficiency, and global competitiveness in the electronics industry.

News by Rahul Yelligetti