New Delhi [India], March 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Electronics Component Manufacturing Scheme, allocating 22,919 crore to strengthen India’s self-reliance in the electronics supply chain.
Addressing the media after the cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw stated that the scheme aims to develop a robust component ecosystem, attract large global and domestic investments, enhance Domestic Value Addition (DVA), and integrate Indian companies with Global Value Chains.
Key Highlights of the Scheme:
- Expected to attract 59,350 crore in investment.
- Projected to generate 4,56,500 crore worth of production.
- Will create 91,600 direct jobs and many more indirect employment opportunities.
India’s Rise in Electronics Manufacturing:
India has emerged as a global electronics manufacturing hub, with the sector witnessing significant growth:
- Domestic production of electronic goods surged from 1.90 lakh crore (FY 2014-15) to 9.52 lakh crore (FY 2023-24), achieving a CAGR of over 17%.
- Electronics exports increased from ₹0.38 lakh crore (FY 2014-15) to 2.41 lakh crore (FY 2023-24), growing at over 20% CAGR.
- India’s electronics production is projected to reach USD 300 billion by 2026.
India: The World’s 2nd Largest Mobile Manufacturing Hub
- In 2014, India had only two mobile manufacturing units—today, that number has grown to over 300.
- In 2014-15, only 26% of mobile phones sold in India were locally made—now, over 99% are manufactured in India.
- The manufacturing value of mobile phones has skyrocketed from 18,900 crore (FY14) to ₹4,22,000 crore (FY24).
- India manufactures 325–330 million mobile phones annually, with over a billion devices in use.
- Mobile exports, virtually non-existent in 2014, have now surpassed 1,29,000 crore.
With this initiative, India is set to solidify its position as a global electronics powerhouse, contributing significantly to economic growth and job creation.