New Delhi, March 28 (IANS) To make India 'Atmanirbhar' in the electronics supply chain, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the electronics component manufacturing scheme with a funding of Rs 22,919 crore.

The scheme envisages to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 people and many indirect jobs as well during its tenure.

This scheme aims to develop a robust component ecosystem by attracting large investments in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs).

The tenure of the scheme is six years with one year of gestation period and the payout of a part of the incentive is linked with employment targets achievement, according to the Cabinet.

The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.

The domestic production of electronic goods has increased from Rs 1.90 lakh crore in FY 2014-15 to Rs 9.52 lakh crore in FY 2023-24 at a CAGR of more than 17 per cent.

The exports of electronic goods have also increased from Rs 0.38 lakh crore in FY 2014-15 to Rs 2.41 lakh crore in FY 2023-24 at a CAGR of more than 20 per cent.

The India Electronics and Semiconductor Association (IESA) on Friday welcomed the government’s approval of the production-linked incentive (PLI) scheme for electronic components and subassemblies manufacturing, a long-standing industry demand.

As per IESA report, India’s electronics market of domestic manufacturing and exports expected to grow to $400 billion by the year 2030.

“The Component PLI will accelerate the ‘Make in India’ initiative, driving higher value addition and strengthening the domestic supply chain with import reductions. Alongside the semiconductor manufacturing ramp-up and the existing PLI for electronics manufacturing, these initiatives will enhance India's global competitiveness,” said Ashok Chandak, President, IESA.