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March 17, 2025

IT Ministry Policy: ₹23,000 crore for Domestic Value Addition and Employment

The IT ministry is set to decide the final shades of the electronics component incentive plan, an ambitious incentive policy for electronic component manufacturing within India. The policy will attract an outlay of around ₹23,000 crore, spread over six years. The aim is to further strengthen the domestic value of manufacturing after localising smartphone assembly within India. This scheme is a crucial step ahead of the production linked incentive (PLI) scheme for smart phone manufacturing, which is nearing its sunset.

Domestic manufacturing: Next Step

Currently, the local value addition in electronics manufacturing remains as low as 15 to 20%. This remains the case, despite being able to attract electronic companies like Apple and Samsung to localise some of their overall assembly within India. With this policy, the government is hoping to raise it to 40% by providing a subsidy on electronic component manufacturing. That is why a scheme that focuses on component manufacturing is considered an important second step.
The components targeted through the scheme include display module, sub assembly camera module, printer circuit board assemblies, lithium cell, enclosures, resistors, capacitors and others.
The electronics component incentive plan is also a crucial step towards creating employment.

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