Electronics Components Manufacturing Scheme

10.04.2025

Electronics Components Manufacturing Scheme

Why in the news?                                                                                                                                                                                                                                     The Ministry of Electronics and Information Technology (MeitY) recently notified the Electronics Components Manufacturing Scheme, marking a significant step towards strengthening India’s position as a global hub for electronics manufacturing.

About Electronics Components Manufacturing Scheme:

• It is the first dedicated production-linked incentive (PLI) scheme to promote the manufacturing of select passive electronic components, including resistors, capacitors, speakers, microphones, special ceramics, relays, switches and connectors.
• The scheme will offer three incentive structures:
  • Turnover-linked incentive (based on revenue)
  • Capex-linked incentive (for investments in plants & machinery)
  • Hybrid incentive model (a combination of both)
• Incentives for incremental investments and turnover range from 1–10% depending on the year and the component.
• Employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers. Thus, the scheme not only boosts manufacturing but also creates skilled jobs.
• This scheme has a tenure of six years, with a one-year gestation period.
• The scheme focuses particularly on passive electronic components. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM).
• This scheme is set to benefit a number of industries, such as automobiles, consumer electronics, and electronics.

                                                              Source: PIB

Consider the following statements regarding the Electronics Components Manufacturing Scheme, recently seen in the news:

1. It is the first dedicated Production-Linked Incentive (PLI) scheme to promote the manufacturing of select passive electronic components.

2. Employment generation will be a mandatory requirement for all applicants under the scheme.

Which of the statements given above is/are correct?

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

Answer C