The industry organization expects that government support for non-semiconductor components could help reduce the national deficit from USD 146 billion (Rs 12.36 lakh crore) to USD 102 billion (Rs 8.63 lakh crore). Elcina Secretary General Rajoo Goel told PTI that unlike finished goods, which can yield up to 16 times the investment, an electronic components factory can achieve a maximum output of three times the capital invested.

"People hesitate to expand their investment in electronic components due to low return, high operational cost and long gestation period. Therefore we have requested the government for USD 8.57 billion comprsing USD 2.14 billion for capex to encourage expansion of the industry and USD 6.43 billion as PLI," Goel said.

The government is currently evaluating an extensive plan to aid the manufacturing of non-semiconductor electronic parts. Elcina has incorporated tiny electronic parts, printed circuit boards, certain discrete semiconductors, active components, metal parts, and more in the estimates.

The industry association states that the parts needing support represent 60 percent of the overall cost of a final product. Goel mentioned that from the 60 per cent, non-semiconductor parts make up 40 per cent of the overall product value, while semiconductors constitute 20 per cent.

The government has established the India Semiconductor Program, under which it has so far sanctioned investments totaling Rs 1.52 lakh crore. Goel mentioned that backing non-semiconductor parts will generate 50 lakh extra jobs by 2030 since the sector is labor-intensive.