India readies Rs 25,000 cr boost for its electronics components industry
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The proposal is likely to get cabinet approval later this month ahead of its rollout from April, said government officials aware of the matter. As part of the scheme, electronics components worth $50-60 billion are estimated to be produced over the scheme's five-to-six year tenure, they said.
Discussions between the ministry of electronics and IT (MeitY)—the nodal ministry for the scheme— and finance ministry initially were for an outlay of Rs 30,000-40,000 crore but the finance ministry settled on a lower amount after getting estimates on investments, demand and production from the industry, according to the officials.
The finance ministry also wanted to ensure the entire fund pool is fully used unlike the production-linked incentive (PLI) schemes for smartphones and IT hardware where the outlay remains underutilised.
One of the officials said the amount can be revised upwards if the entire outlay is claimed. Also, unlike the smartphone PLI scheme where 4-6% incentives are given to companies on reaching a production threshold, incentives on the component scheme will vary as per the products, depending on disability and localisation, a second official said.
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