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Plug and play model in works for electronic components manufacturing

Thursday, 02 May 2024
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To start large-scale domestic manufacturing of electronic components, the government is in the process of outlining a new incentive scheme, along the lines of plug-and-play model. The scheme will be different from production-linked incentive schemes or subsidy scheme for semiconductors.

The aim of this model is to enable domestic production of printed circuit boards, electronic components such as resistors, diodes, camera modules, lens, metallics, and others. Under the plug and play model, the government will identify land, acquire it, and build factories. Global companies manufacturing such products can then install machinery and use the facilities to make the identified items, in a volume-led sector. 

To get started, the government is targeting to have at least five large plants to make components in such industry clusters. Such a model will also create more jobs, both directly and indirectly. A feasible way to check trade deficit in electronics is to increase domestic value addition through domestic production under this model. 

The domestic electronics manufacturing was at USD 102 billion in FY23 and is likely to have risen to around USD 115 billion in FY24. The government has set a target of achieving USD 300 billion by 2025-26. The scheme will be unveiled when a new government assumes office.

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