Cabinet Approves Rs 22,919 Crore PLI Scheme for Non-Semiconductor Electronics Components
New Delhi, March 28 : The Union Cabinet on Friday approved a Production Linked Incentive (PLI) scheme worth Rs 22,919 crore for the manufacturing of non-semiconductor electronic components, aiming to boost domestic production and reduce import dependency.
Announcing the decision after the Cabinet meeting chaired by Prime Minister Narendra Modi, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said the scheme is expected to generate direct employment for around 91,600 people and attract investments of approximately Rs 59,350 crore.
This marks the government’s first targeted initiative to promote the domestic manufacturing of passive electronic components. These components, essential for regulating electrical currents, do not generate or amplify energy on their own but are vital for the functioning of various electronic systems.
Vaishnaw stated that the PLI scheme for electronic components will be implemented over six years and is designed to meet the growing demand from sectors such as telecommunications, consumer electronics, automotive, medical devices, and the power industry. The scheme is projected to lead to a total production output of Rs 4.56 lakh crore.
According to industry body Electronic Industries Association of India (ELCINA), the production of non-semiconductor electronic components in India was valued at around USD 13 billion in 2022. This figure is expected to rise to USD 20.7 billion by 2026 and could touch USD 37 billion by 2030.
ELCINA has also warned that without adequate government support, the segment could face a cumulative trade deficit of USD 248 billion (approximately Rs 21 lakh crore) by 2030, which would need to be met through imports. To address this challenge, the association had previously recommended a support package of USD 8.57 billion (around Rs 72,500 crore) to reduce this projected deficit by Rs 12.36 lakh crore over the next six years.
The newly approved scheme is seen as a significant step toward strengthening India’s electronics manufacturing ecosystem and positioning the country as a global hub for component production.
