The Government of India has started consultations with the industry for the production-linked incentive (PLI) scheme for electronics components manufacturing, which is likely to have an outlay of around Rs 20,000 crore.

The Ministry of Electronics and IT (Meity) aims to receive funds allocation for the scheme in the budget, which will be presented in July this year by the government. While the exact quantum of the scheme outlay will be finalised after the consultations, the industry expects the amount to exceed Rs 20,000 crore to achieve the set target for setting up an ecosystem. The Meity has urged the industry to provide details about India’s import dependency on electronic components for the last five years as well as what components were made in India in the same period.

To formulate a roadmap for building an ecosystem, electronics components have been mapped into different categories like capex-intensive, labour-intensive, scale driven and components that require art technology. Further, the industry has been urged to submit a comprehensive list of electronics components to focus on broadening the components manufacturing ecosystem in the country. The government seeks to understand the challenges and barriers to manufacturing these locally.

In addition, it also intends to learn about key sub-assemblies as well as a list of capital goods/equipment for which government support is required for developing the component manufacturing and semiconductor ecosystem. The government is targeting electronics manufacturing worth USD 300 billion by 2026, of which USD 18 billion could be for components.