PLI Scheme Set to Propel Electronics Exports and Create Jobs

New Delhi(The Uttam Hindu): With smartphone exports crossing Rs 2 lakh crore in FY25, including around Rs 1.5 lakh crore from iPhones, the IT Ministry has announced the Rs 22,919 crore Electronics Components Manufacturing Scheme (ECMS). This move strengthens India’s position as a global electronics manufacturing hub. Union Minister Ashwini Vaishnaw stated that the ECMS notification follows a recent Cabinet decision. He emphasized that the government takes an open, consultative approach, considering all views before finalizing laws or policies. Over the past decade, electronics production has surged five-fold, and exports have expanded more than six-fold, with a compound annual growth rate (CAGR) exceeding 20% in exports and over 17% in production. Vaishnaw highlighted that India's electronics manufacturing ecosystem has grown substantially, with over 400 production units involved in producing various components. This growth has moved through distinct phases: from finished goods to sub-assemblies, and now to deep component manufacturing.

The current phase marks a significant leap in value addition, self-reliance, and ecosystem development. The scheme, designed as a horizontal initiative, will benefit multiple sectors, including consumer electronics, medical devices, automobiles, power electronics, and electrical grids, thus creating a strong multiplier effect across the economy. The scheme specifically focuses on passive electronic components, such as resistors, capacitors, connectors, inductors, sensors, and more. Active components fall under the India Semiconductor Mission (ISM). Additionally, the scheme will support the design and manufacturing of capital equipment used in electronics production. A key feature of the scheme is mandatory employment generation for all applicants, including both component manufacturers and capital equipment producers.