India Clears ₹5,532 Cr Projects to Boost Electronics Production

• Cabinet approves Rs 5,532 Cr ECMS projects for 24 initiatives in 10 states.
• Dixon, Tata Electronics lead investments; 1.2 lakh jobs, Rs 22,919 Cr capacity.
• Reduces imports 20-25%; boosts Atmanirbhar Bharat in electronics.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ Union Cabinet, led by Prime Minister Narendra Modi, has given its approval to projects worth Rs 5532 crore under the Electronics Component Manufacturing Scheme (ECMS) aimed at strengthening India's domestic production of vital electronic components and cutting down import dependence. The move under the PLI framework is focusing on mainly high-value items such as printed circuit board assemblies (PCBAs), lead frames, and capacitors thereby creating a stable supply chain ecosystem in the local market.

The sanctioned expenditures entail 24 projects spread over ten states with 20 companies involved. The main beneficiaries are Dixon Technologies (Rs 1,117 crore for PCBA manufacturing), Tata Electronics Private Ltd (Rs 1,764 crore for semiconductor-related components), and PG Electroplast (Rs 1,200 crore for electronic assemblies). Besides, Kaynes Technology (Rs 1,000 crore) and Syrma SGS Technology (Rs 800 crore) have also come up with notable investment plans in the areas of capacitors and connectors.

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The reasons for these project suggestions include generating Rs. 5,532 crores in non-public direct projects, creating 120,000 direct and indirect employment opportunities, and establishing an annual production capacity worth Rs. 22,919 crores. To encourage the production of such components locally, the plan grants a concession of up to 25% of the incremental sales for a period of six years.

The Minister of Electronics and Information Technology, Ashwini Vaishnaw, conveyed that: "This clearance is an important milestone in the electronics journey of Atmanirbhar Bharat. With ECMS, we aspire to create a self-sufficient supply chain that leads to a 20-25% drop in imports and establishes India as a global hub." The decision is quite consistent with the growth of electronics manufacturing India has achieved. The country managed to scale up its electronics manufacturing base from $75 billion in 2021 to a target of $300 billion by 2026 with the India Semiconductor Mission worth Rs 76,000 crore as one of the main enablers. ​‍​‌‍​‍‌​‍​‌‍​‍‌