The Indian Cabinet has approved a ₹23,000 crore PLI scheme to boost electronics component manufacturing.
The Indian government has taken a massive leap towards strengthening its ‘Make in India’ initiative. In a major policy push, the Union Cabinet has approved a ₹22,990 crore Production Linked Incentive (PLI) scheme for electronics component manufacturing, aiming to reduce import dependence and make India a global manufacturing hub.
This scheme- Electronics Component Manufacturing Scheme (ECMS)-is set to generate ₹4.56 lakh crore worth of production, attract ₹59,000+ crore in investments, and create over 91,600 direct jobs in the next 6 years. If you’re in the business of electronics, this is your moment to shine.
Why This PLI Scheme is a Game-Changer
India currently imports over 85% of its electronic components. This new PLI scheme seeks to change that by offering financial incentives to manufacturers who commit to making core electronic parts like:
- Display Module
- Camera module
- Non-Surface Mount Devices (non-SMD) passive components for electronic applications
- Multi-layer Printed Circuit Board (PCB)
- SMD passive components
- Capital goods used in electronics manufacturing, including their sub-assemblies and components
The tenure of the scheme is six (6) years with one (1) year of gestation period.
Key Benefits for Eligible Companies
- Up to 25% incentive on capital expenditure
- Turnover linked incentive
- Incentive on the basis of employment targets achievement
- Seamless integration with India’s larger electronics ecosystem
The scheme is designed to be inclusive and future-forward, boosting not just quantity, but also quality and innovation.
With over two decades of experience, Osgan Consultants Pvt. Ltd. has been a trusted advisory partner for multinational corporations, Indian Listed Companies, and businesses in availing incentives under different Central & State government.
