The electronics component manufacturing scheme has received a major boost, with the government receiving investment proposals worth Rs 1.15 lakh crore, electronics and IT minister Ashwini Vaishnaw said on Thursday. The submissions have surpassed the government’s expectations across investment, production and employment, Vaishnaw said.
Significant financial recovery and realisation rate
“The application window for the electronics component manufacturing scheme closed on September 30. We have received investment proposals of Rs 115,351 crore,” Vaishnaw told reporters, adding that the target had been Rs 59,350 crore. “Against a production target of Rs 456,500 crore, we have received production estimates of more than Rs 10,34,000 crore. That is more than double what we had set,” he said.
Employment generation, too, has overshot projections. While the scheme was designed to create 91,600 jobs, applications promise around 141,000 positions. “We had targeted employment of around 91,600 persons, but now it is expected to be one and a half times more at 141,000 persons,” Vaishnaw said. Electronics and IT secretary S Krishnan confirmed the projections, calling it an important marker of the sector’s momentum.
Global trust fuels sector momentum and future strategy
Vaishnaw said global confidence in the country’s manufacturing capabilities built over the past decade is now translating into tangible gains. “The trust which has developed worldwide in India in the last 11 years in electronics manufacturing is today resulting in investments, production and employment,” he said.
The minister said the government would soon release a detailed breakdown of applications, covering which sectors and components have drawn maximum interest. He underscored that the application window for the capital equipment segment remains open, keeping the pipeline of proposals active.
The government had in March announced a Rs 22,919 crore incentive scheme aimed at boosting domestic production of key components, ranging from printed circuit boards and lithium-ion battery cells to sub-assemblies for display and camera modules. Spread over six years, the scheme.
The government has targeted doubling electronics exports from the current Rs 2.5 lakh crore in the next three and a half to four years.