Govt. notifies ₹22,919-cr. sop scheme for electronic parts, Pg 15

Key Highlights

Electronics Component Manufacturing Scheme

• The Ministry of Electronics and Information Technology has notified a ₹22,919-crore scheme, valid for 6 years, to promote domestic production of passive electronic components.

• The scheme offers capex-linked and turnover-linked sops (1-10%) to manufacturers, depending on year and component type.

Focus on Passive Components and Value Addition

• Targets sub-assemblies and components that add domestic value to electronics manufacturing (e.g., parts inside smartphones).

• Aims to replicate success seen in smartphone assembly, now largely done in India.

Current Scenario and Goals

• India’s domestic value addition stands at 18%, compared to China’s 38%.

• The government aims to double value addition by 2030, increasing India’s electronics manufacturing competitiveness globally.

Ministerial Insight

• Union Minister Ashwini Vaishnaw emphasized the importance of building a resilient supply chain and reducing import dependence for core components.

India-specific Angle

• Aligns with Atmanirbhar Bharat and PLI (Production Linked Incentive) goals.

• Could enhance India’s tech ecosystem, reduce import bills, and create high-skilled jobs in the electronics sector.

Analysis & Way Forward

• This targeted support could boost MSMEs, improve supply chain autonomy, and reduce reliance on Chinese imports.

• Successful implementation depends on infrastructure, skill development, and R&D investment.

Mains Mock Question:

"India aims to double its domestic value addition in electronics manufacturing by 2030. Discuss the significance and challenges of the Electronics Component Manufacturing Scheme in achieving this goal."