Govt unveils ₹22,919 cr electronics scheme, promises 1 lakh jobs and export boost

Electronics and IT minister Ashwini Vaishnaw today said the ₹22,919 crore electronics component manufacturing scheme approved by the cabinet today will boost opportunities for the youth in the country and will create about one lakh direct employment.

The scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs).

“Electronics manufacturing has witnessed a historical growth in the last ten years. Production has gone up five times in the last ten years at 17% CAGR. Electronics exports has grown six-fold at 20% CAGR. Now electronics has become among the top three items in the export of goods,” said Vaishnaw.

“To take it further, because electronics, textile, garments, are the sectors that generate huge amount of employment. To help it grow further a historical decision has been taken. We have already made a good success in semiconductor and PLI based finished products. And now, through this scheme we are covering sub-assemblies and bare components. This will significantly improve the value addition that we get,” Vaishnaw said.

“This scheme will be for six years and will impact a number of sectors such as electronics, telecom, consumer, medical devices, automobile, power sector,” said Vaishnaw.

“The scheme envisages to attract investment of Rs 59,350 crore, result in production of ₹4,56,500 crore and generate additional direct employment of about one lakh persons and many indirect jobs as well during its tenure,” he added.