New Delhi: As India scales its production to reach $500 billion in electronics manufacturing by 2030, the Rs 22,919 crore Electronics Component Manufacturing Scheme (ECMS) will usher in a new era of growth, industry leaders said on Friday.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the electronics component manufacturing scheme with a funding of Rs 22,919 crore.
The scheme envisages to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 people and many indirect jobs as well during its tenure.
“We are deeply grateful to the Ministry of Electronics and IT (MeitY) for its leadership for creating an exceptional scheme which will serve to create jobs, expand MSME participation and increase value addition in the electronics sector,” said Pankaj Mohindroo, Chairman, the India Cellular and Electronics Association (ICEA).
India has witnessed an unprecedented growth in the mobile and electronics sector. Domestic production has increased 400 per cent to an estimated $135-140 billion over the last decade since FY15.
“The ECMS will now catalyse the industry to deepen integration with Global Value Chains (GVCs), establish large-scale manufacturing units, and enable significant employment generation,” Mohindroo added.
As per an IESA report, India’s electronics market of domestic manufacturing and exports expected to grow to $400 billion by the year 2030.
“The Component PLI will accelerate the ‘Make in India’ initiative, driving higher value addition and strengthening the domestic supply chain with import reductions. Alongside the semiconductor manufacturing ramp-up and the existing PLI for electronics manufacturing, these initiatives will enhance India’s global competitiveness,” said Ashok Chandak, President, IESA.
According to Dr Ajai Chowdhry, Founder of HCL and Chairman, EPIC Foundation, this will enable much higher value addition in the country for electronics manufacturing and will attract more investments in system products as local availability will enable just-in-time manufacturing.
“Moreover, this scheme has an attractive employment linked incentive scheme in addition to PLI and Capex benefits which will further promote employment growth, workforce competitiveness and economic development,” he mentioned.
(IANS)
