The Union Cabinet has approved a production-linked incentive (PLI) scheme for passive electronic components, with a total investment of Rs 22,919 crore. The announcement was made by Union Electronics and IT Minister Ashwini Vaishnaw on Friday. This is the first time a scheme has been introduced specifically to boost the manufacturing of passive, non-semiconductor electronic components.
Vaishnaw explained that the scheme aims to create job opportunities for 91,600 people and attract investments worth around Rs 59,350 crore. The initiative will support the manufacturing of passive components under the Electronics Component PLI program, with funding to be distributed over six years.
The scheme is expected to benefit multiple sectors, including telecom, consumer electronics, automotive, medical devices, and power. It is projected to generate a production output worth Rs 4.56 lakh crore.
The Electronics Component Manufacturers Association (Elcina) reported that India’s production of non-semiconductor components was valued at approximately USD 13 billion in 2022. This figure is expected to rise to USD 20.7 billion by 2026 and potentially reach USD 37 billion by 2030. Despite this growth, the sector is still facing a deficit, which is being addressed through imports. Elcina had requested government support worth USD 8.57 billion (about Rs 72,500 crore) to reduce the deficit by Rs 12.36 lakh crore over the next six years.
Without government intervention, Elcina estimates the deficit could grow to USD 248 billion (around Rs 21 lakh crore) by 2030. However, with the new scheme’s support, the deficit could be reduced by USD 146 billion (Rs 12.36 lakh crore), bringing the gap down to USD 102 billion (Rs 8.63 lakh crore).
