File Figure of the Minister of Trade Unions for Information and Broadcasting and Railway Ashwini Vaishnaw | Photo Credit: Shiv Kumar Pushpakar
The Union cabinet on Friday (March 28, 2025) approved the electronics production scheme of 22,919 GBP for six years. The scheme is another step in government efforts to produce electronics that have so far focused on setting up semiconductor units and IT hardware along with finished products such as mobile phones.
With the financing of the ecosystem of the component, this system is aimed at increasing added value for electronic goods in India – while semiconductor packaging and assembly races of mobile phones have received heavy support from trade unions and state government, they are made of much smaller parts that must often be imported.
“Passive production of components and sub-registers will increase the addition of domestic value,” Mr. Vaishnaw told the media staff. “Countries that have made electronics for more than three decades have been able to achieve a high adding home value of 38-40%. Within ten years we have already achieved 20%. Now we have to focus on doubling in the next five years by having passive and active components.”
Unlike previous schemes, this is not based on the motivation associated with production, where manufacturers will be rewarded for incremention production. Instead, they get incentives suspended to the factory turnover even when creating employment. The aim is to trigger 59,350 GBP Crore in investments, production worth 4,56,500 GBP Crore and creating 91,600 direct jobs in the coming years.
Active components refer to semiconductors and other critical components. This diagram focuses on sub -assemblies (such as displays and telephone cameras) and for the so -called “bare components”, which include circuits, hardware covers and lithium ion batteries.
The scheme also focuses on investment goods, especially large machines, which are in itself used to produce other components. “Since the volume of the finished goods has increased, it created the demand for investment goods,” Vaishnaw said. “Today, clusters have evolved in Coimbatore, Bengalur, Pune, Rajkot and Vadodar, where people (already) invested (already) invested in the production of investment goods and supplied to manufacturers.”
The government has not yet announced what percentage of expenditure will be in which category of components and investment goods – it will be clearer if the system itself triggers, which Mr. Vaishnaw said will be done within a few weeks.
The scheme “attracts investment and increases job creation,” said Prime Minister Narendra Modi in the X, formerly Twitter. “It also encourages innovation.”
Published – March 28, 2025 14:23
