Cabinet approves ₹22,919 cr PLI scheme for non-semiconductor components

The Union Cabinet, led by Prime Minister Narendra Modi, has green-lit the long-awaited production-linked incentive (PLI) scheme for non-semiconductor electronics components at an outlay of ₹22,919 crores, Union Electronics and IT Minister Ashwini Vaishnaw said on Friday. The PLI scheme aims to boost domestic manufacturing, strengthen India’s electronics supply chain and dependence on imports. The scheme is expected to channel investments worth ₹59,350 crores, generate production worth ₹4,56,500 crores and provide for 91,600 direct jobs as well as many indirect jobs over the span of six years, Vaishnaw said.

“Passive components are approved under the Electronics Component PLI scheme. It has a total package of ₹22,919 crore. This will be for over six years,” Vaishnaw said.

Electronics is one of the world’s fastest-growing industries and plays an important role in economic and technological progress. In the past decade this industry has grown tremendously in India, growing at a growth rate from ₹1.90 trillion in 2014-15 to ₹9.52 trillion in 2023-24 at a compound annual growth rate (CAGR) of over 17 percent, a government bulletin showed. Exports have also grown: Electronic goods’ exports in 2023-24 was ₹2.41 trillion; it was ₹0.38 trillion in 2014-15, a CAGR of over 20 percent. The approved scheme will target passive components, which include resistors, capacitors, and inductors, which are required building blocks of electronic devices.