Rs 23K cr PLI Scheme for Electronics Components Approved

New Delhi, Mar 28 (PTI) The Union Cabinet on Friday approved a production-linked incentive scheme for passive or non-semiconductor electronics components with an outlay of Rs 22,919 crore, Union Electronics and IT Minister Ashwini Vaishnaw said.

It is the first scheme that focuses on promoting the manufacturing of passive electronic components.

The minister said that the scheme will create direct employment for 91,600 people and attract investment of around Rs 59,350 crore.

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

The minister said that that segment will serve the requirements of several sectors, including telecom, consumer electronics, automobile, medical devices, power sector etc.

He said that the scheme is expected to lead to production of Rs 4.56 lakh crore.

According to electronics component makers body Elcina, non-semiconductor components production in India was around USD 13 billion in 2022 which is projected to reach around USD 20.7 billion by 2026 and around USD 37 billion by 2030 if the business continues as usual thereby leading a deficit of USD 248 billion in the segment in the next six years. The deficit is met through imports.

Elcina had sought a USD 8.57 billion (about Rs 72,500 crore) support package to reduce the deficit by Rs 12.36 lakh crore in the next six years.

Electronic Industries Association of India (Elcina) estimates that the deficit in the segment can increase to USD 248 billion (about Rs 21 lakh crore) by 2030 in the absence of government support to local production. The country's oldest technology industry body projects that the government's support could help reduce the deficit in the passive component segment by USD 146 billion (Rs 12.36 lakh crore) to USD 102 billion (Rs 8.63 lakh crore).