Why in the News?

The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme to expand the manufacturing capabilities of passive electronic components in India.

About Electronics Components Manufacturing Scheme:

• The scheme is designed to promote the manufacturing of select electronic components in India, such as resistors, capacitors, relays, switches, sensors, and connectors.
• It focuses particularly on passive electronic components, while active components like semiconductors fall under the India Semiconductor Mission (ISM).
• The scheme has a tenure of 6 years, with a 1-year gestation period.
• The scheme offers 3 types of incentives:

1. 1. Turnover-linked incentive: Based on revenue.
   2. Capex-linked incentive: For investments in plants and machinery.
   3. Hybrid incentive model: A combination of both turnover and capex incentives.

Government Initiatives for Electronics Growth:

• Make in India (2014): Aimed at boosting India’s manufacturing sector and transforming it into a global hub for design and manufacturing.
• Phased Manufacturing Programme (2017): Focused on increasing domestic value addition in mobile phones and their parts.
• Production Linked Incentive (PLI) Scheme (2020): Aimed at boosting domestic manufacturing in mobile phones, electronic components, and semiconductor packaging, offering 3-6% incentives on incremental sales.
• Semicon India Program (2021): With a financial outlay of ₹76,000 crore, this scheme promotes the domestic semiconductor industry.
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (2021): Provides a 25% financial incentive for capital expenditure in electronic goods manufacturing.
• Increased Budget for 2025-26: The allocation for electronics manufacturing has been raised from ₹5,747 crore in FY 2024-25 to ₹8,885 crore in FY 2025-26.

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