India's Groundbreaking Electronics Manufacturing Initiative: Boosting Passive Component Production

The Indian government is set to launch a Rs 22,919 crore electronics manufacturing scheme in three weeks, focusing on indigenous production of passive components. Expected to attract Rs 59,350 crore investments, the scheme aims to generate Rs 4.5 lakh crore in production and 91,600 jobs, promoting export-led growth.

The Indian government is poised to announce a monumental Rs 22,919 crore electronics manufacturing scheme, aimed at bolstering indigenous production of passive components, Electronics and IT Minister Ashwini Vaishnaw confirmed on Friday. This unprecedented initiative, approved by the Union Cabinet, is set to reshape the electronics sector by emphasizing local manufacturing.

Designed over a six-year span, the scheme is anticipated to attract a staggering Rs 59,350 crore in investments, resulting in electronic components worth Rs 4.5 lakh crore. Additionally, it is expected to create 91,600 direct jobs and numerous indirect ones. The program includes incentives based on employment, capital, and company turnover to promote export-led growth.

Highlighting India's sharp growth in electronics manufacturing, Minister Vaishnaw noted that the sector had expanded fivefold in the past decade to Rs 10 lakh crore. With an eye on export markets, the scheme will enable India to become a major supplier of electronic components by focusing on deepening the supply chain and enhancing design capabilities.

(With inputs from agencies.)