The Union Cabinet, led by Prime Minister Narendra Modi, has today sanctioned the Electronics Component Manufacturing Scheme with a budget of ₹22,919 crore to achieve Atmanirbhar Bharat in the electronics supply chain.
A statement released by the cabinet indicated that this initiative seeks to create a strong ecosystem for components by drawing significant investments (both global and domestic) into the electronics components manufacturing sector, enhancing Domestic Value Addition (DVA) through capacity and capability development, and connecting Indian firms with Global Value Chains (GVCs). The Electronics Component Manufacturing Initiative seeks to draw in investments of ₹59,350 crore, leading to a production value of ₹4,56,500 crore. The initiative is anticipated to create 91,600 new direct jobs and numerous indirect positions throughout its duration.
The program offers distinct incentives to Indian manufacturers designed to address specific challenges for different types of components and sub-assemblies, enabling them to develop technological skills and attain economies of scale.
The program encompasses the supply chain ecosystem and capital equipment for electronics production, which includes parts/components utilized in the manufacturing of sub-assemblies and bare components, as well as capital goods employed in electronics manufacturing, including their sub-assemblies and components. The duration of the program is six years, including a one-year gestation phase. Disbursement of a portion of the incentive will be connected to the accomplishment of employment goals.
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