Electronic Manufacturing PLI Scheme: Our focus is on domestic capabilities to grow, says Vaishnaw

IT Minister Ashwini Vaishnaw on Friday said that the government's focus is on the domestic capabilities to grow and we have our own sets of regulations and rules, when asked whether the Centre is open to JVs with companies from other countries after he announced Electronic Manufacturing PLI Scheme.

The Cabinet on Friday approved the scheme with a funding of Rs.22,919 crore.

"It is very complex to manufacture passive components, capital equipment that goes into manufacturing electronic products. These components will go into multiple sectors -- mobile phones, IT Hardware, hearables, servers, desktops. A lot of consumer appliances will also receive these components," he said.

"In 10 years we have reached around 10 per cent of value addition. We must target to double this in the next 5 years. Countries who have been producing for the last three decades have been able to reach a mark of 38 per cent value addition," he added.

The IT minister further said that many women workers get opportunity in this industry.

"Most domestic value addition will come from components used in cameras, non surface mounted devices, electro mechanicals, lithium ions and so on," he said during the announcement.

He then announced the structure of the subsidies. "Firstly there will be employee linked incentive:, we are asking people to define the number of people that they will give employment. Secondly, wherever captial support is required -- There will be capex support. Third, there will be turnover-linked incentive," he said.

He further said that the government is also looking at increasing Domestic Value Addition (DVA) by developing capacity and capabilities , and integrating Indian companies with Global Value Chains.

Additionally, the scheme expects attracting investment of Rs.59,350 crore, resulting in the production of Rs 4,56,500 crore and generating additional direct employment of 91,600 persons and many indirect jobs as well.

The domestic production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%.

Meanwhile, the exports of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%.Projections indicate that India's electronics production will reach $300 billion by 2026.