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Electronics incentive schemes launched

Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Electronics incentive schemes launched

What to study?

For Prelims and Mains: Key features, need for, significance of the schemes, potential of the sector.

Context: The government has launched three incentive schemes with a total outlay of about ₹48,000 crore to boost large-scale manufacturing of electronics in the country.

The schemes are:

  1. Production Linked Incentive:

Targeted at mobile phone manufacturing and specified electronic components. The government initially plans to incentivise 10 firms — five global and five local.

This Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.

  1. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS):

It shall provide financial incentive of 25% on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.

  1. Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme:

It shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.


With the three new schemes, the government aims to manufacture electronics worth ₹8 lakh crore, while generating employment for about 10 lakh people in the next five years.


India has been able to achieve “modest success” in electronics manufacturing. India has emerged as the second largest mobile manufacturer of the world.

In 2014-15, the value of mobiles produced was ₹18,992 crore with six crore units. This increased to ₹1.7 lakh crore in value and 30 crore in terms of units in 2018-19.


This is a step towards self-reliant India. A self-reliant India is not an India of isolation. It is not an inward looking India. It is one which enhances its capacity and develops an ecosystem as an asset to the global economy.

Sources: the Hindu.