• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Electronics Component Manufacturing Scheme with a funding of Rs 22,919 crore focusing on indigenous manufacturing of passive or non-semiconductor components.

• This scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in the electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).

• Electronics and IT Minister Ashwini Vaishnaw said that the scheme is expected to attract investment of Rs 59,350 crore, resulting in the production of electronic components worth over Rs 4.5 lakh crore and generate additional direct employment of 91,600 persons and many indirect jobs during its tenure.

• The scheme is spread over a period of six years with three incentive components — employment, capital requirement and turnover of the companies.

• Through the scheme, the government is looking to have a change in the mindset of companies to export-led growth to become a major supplier of many of the electronic components.

• The electronics manufacturing sector has grown five times in the last 10 years to Rs 10 lakh crore, providing employment to about 25 lakh people. 

• Exports have grown six times in the last 10 years to Rs 2.5 lakh crore and are expected to double in the next four years. 

• The government has already covered active components like semiconductors under the India Semiconductor Mission. 

• Now, this component manufacturing scheme, which is being done for the first time in our country, will be covering passive components.

• The scheme will cover components like display module sub-assembly, electro-mechanicals for electronic applications, multi-layer printed circuit board (PCB), enclosures for mobile, IT hardware products and related devices, and lithium-ion cells for digital applications.

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