India Announces Rs. 25,000 Cr Incentive Scheme to Boost Electronics Components Manufacturing

The Indian finance ministry has approved a Rs. 25,000 crore ($3 billion) incentive scheme to promote local production of electronics components. Set to be rolled out in April, this scheme aims to generate $50-60 billion worth of electronics components over the next five to six years, according to government officials.

The proposal, which is expected to receive cabinet approval later this month, originally had an outlay of Rs. 30,000-40,000 crore. However, the final amount was reduced after consultations with the Ministry of Electronics and IT (MeitY) and the finance ministry, factoring in industry estimates for investments, demand, and production capabilities.

The government is keen on ensuring full utilization of the funds, as seen in the underuse of funds in the production-linked incentive (PLI) schemes for smartphones and IT hardware. The amount could be revised if the full allocation is claimed by the industry.

Source: The Economic Times