Powering Employment: ₹23,000 Crore for Electronics Manufacturing

The IT Ministry has finalized an incentive policy for electronic components manufacturing, allocating ₹22,919 crore over six years to enhance domestic value addition.

Building on the success of smartphone assembly localization, the government now aims to expand production in key areas such as display modules, camera sub-assemblies, printed circuit board assemblies, lithium cell enclosures, resistors, capacitors, and ferrites. A major focus is employment generation, with a target of creating 91,600 direct jobs over the scheme’s duration.

A senior official stated, “The scheme is expected to generate 91,600 direct jobs over six years, with annual incentive payouts ranging from ₹2,300 crore to ₹4,200 crore, subject to companies meeting investment, production, and employment targets.”

The scheme will offer three types of incentives: operational expense-based, capital expense-based, or a hybrid model combining both. Operational incentives will be tied to net incremental sales, following a model similar to PLI schemes, while capital expenditure incentives will be based on eligible capital investments.

News by Rahul Yelligetti.