It is the first scheme that focuses on promoting the manufacturing of passive electronic components. The Union Minister said that the scheme would create direct employment for 91,600 people and attract investment of around Rs. 59,350 crore.
“Passive components are approved under the Electronics Component PLI scheme. It has a total package of Rs 22,919 crore. This will be over six years,” Vaishnaw said.
He said that the segment would serve the requirements of several sectors, including telecom, consumer electronics, automobile, medical devices, power sector etc. He said that the scheme was expected to lead to a production of Rs. 4.56 lakh crore.
“Electronics is one of the highest-traded and fastest-growing industries globally and is expected to play a pivotal role in shaping the global economy and advancing a country’s economic and technological development. Since electronics permeates all sectors of economy it has economic and strategic importance. With various initiatives of Gol, the electronics manufacturing sector has witnessed remarkable growth in the last decade. The domestic production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%. The export of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%,” said a release.
According to electronics component makers body Elcina, non-semiconductor components production in India was around $13 billion in 2022 which is projected to reach around $ 20.7 billion by 2026 and around $37 billion by 2030 if the business continues as usual, thereby leading a deficit of $248 billion in the segment in the next six years. The deficit is met through imports.
Elcina had sought a $ 8.57 billion (about Rs. 72,500 crore) support package to reduce the deficit by Rs. 12.36 lakh crore in the next six years.
Electronic Industries Association of India (Elcina) estimates that the deficit in the segment can increase to $248 billion (about Rs. 21 lakh crore) by 2030 in the absence of government support to local production. The country’s oldest technology industry body projects that the government’s support could help reduce the deficit in the passive component segment by $146 billion (Rs. 12.36 lakh crore) to $102 billion (Rs. 8.63 lakh crore).
“This is a strong endorsement of Tamil Nadu’s ongoing strategy to move up the electronics value chain by moving into components manufacturing, a mission we have been pursuing diligently for the last couple of years. The Union Government’s initiative further strengthens our approach and provides the much-needed boost for the sector. Tamil Nadu’s existing electronics ecosystem and rich talent pool have already made the electronics PLI one of the most successful PLI schemes in the country, and we are confident that this components PLI will also work because, under the leadership of Honorable @CMOTamilNadu Thiru. @MKStalin avargal, we have already laid the groundwork for it, and it is already showing results – details soon !” said T.R.B. Rajaa, Industry Minister of Tamil Nadu, in a posting on microblogging site X.
