Gadget charge: Outlay doubled to Rs 40,000 cr for electronic components, Pg7

Key Highlights:

• The Centre will nearly double the outlay for the electronics components manufacturing scheme from Rs 23,000 crore to Rs 40,000 crore.
• The scheme was launched in April 2025 with an initial outlay of Rs 22,919 crore.
• So far, 46 applications have been approved under the scheme, with a total proposed investment of Rs 54,567 crore.
• These investments could generate direct employment for about 51,000 people.
• The IT Ministry approved 22 applications last month, including companies like Foxconn, Tata Electronics, and Samsung.

Detailed Insights:

• The electronics components manufacturing scheme aims to strengthen India's domestic supply chains.
• Incentives under the scheme are linked to annual employment generation, capital expenditure needs, and annual production.
• The scheme targets components like display modules, camera modules, printed circuit board assemblies, and lithium cell enclosures.
• The scheme differs from the Production Linked Incentive (PLI) scheme in how participating companies can avail subsidies.
• The government hopes to raise domestic value addition in electronics manufacturing to at least 30-40%.
• Foxconn and Tata Electronics have been approved to manufacture enclosures for phones and IT hardware.

Key Concepts Involved:

• Electronics Components Manufacturing Scheme: A government initiative to boost domestic production of electronic components.
• Production Linked Incentive (PLI) Scheme: A scheme that provides incentives to companies for increasing production.
• Domestic Value Addition: The percentage of a product's value that is added within the country.