Atmanirbhar Bharat Push: Government Notifies ₹22,919 Crore Scheme to Boost Domestic Electronics Manufacturing

In a major boost to the vision of Atmanirbhar Bharat, the government has notified a ₹22,919 crore incentive scheme to strengthen India’s domestic electronics manufacturing capabilities. The scheme covers a broad range of critical components, including camera modules, displays, lithium-ion cells for digital devices, non-surface mount devices, and multi-layer printed circuit boards (PCBs).

Launched by the Ministry of Electronics and Information Technology (MeitY), the scheme is expected to become operational within the next 2 to 3 weeks. Union Electronics and IT Minister Ashwini Vaishnaw confirmed that the operational guidelines are being finalised following consultations with industry stakeholders.

Towards a Self-Reliant Electronics Ecosystem

This scheme marks a significant step in completing the electronics manufacturing trifecta that underpins an Atmanirbhar Bharat:

1. Semiconductor fabrication
   
2. Semiconductor component production
   
3. Manufacturing of finished electronics goods such as smartphones, laptops, and IT hardware

Minister Vaishnaw highlighted India’s evolving manufacturing landscape, noting that over 400 electronics production units have emerged across the country. This journey has transitioned from the assembly of finished goods to the localisation of core components—a milestone for India’s self-reliance journey in the tech sector.

Exponential Growth in Electronics Output and Exports

India’s electronics industry has recorded commendable growth. The sector saw a compound annual growth rate (CAGR) of 17% in production, while exports registered a higher CAGR of 20%.

Smartphone exports alone crossed ₹2 trillion last financial year, with Apple’s iPhone accounting for nearly ₹1.5 trillion. This reflects the growing role of India in global electronics manufacturing.

Overall, electronics product exports—including mobile phones—grew by 54% year-on-year, positioning them among India’s leading export categories.

Incentive Framework for Manufacturers

Spanning 6 years with an optional one-year gestation period, the scheme offers incentives under 2 models:

Turnover-Based Incentive:

This is tied to net incremental sales of eligible components over a base year, encouraging firms to scale up local production.

Capital Expenditure (Capex)-Based Incentive:

Firms will qualify based on meeting investment thresholds, beginning commercial production, and promoting infrastructure development and capacity expansion.

Both greenfield and brownfield projects are eligible, with separate applications required for each product segment.

Strengthening Atmanirbhar Bharat Through Institutional Support

To oversee the scheme, a governing council chaired by the IT secretary will be formed, with representation from key government departments including:

• Department of Expenditure
  
• Department of Economic Affairs
  
• Department for Promotion of Industry and Internal Trade
  
• Department of Telecommunications
  
• Ministry of Heavy Industries

The council will evaluate reports from the project management agency and offer recommendations for approving applications and releasing incentives.

This multi-agency coordination is expected to ensure transparent execution and alignment with the broader goal of Atmanirbhar Bharat.

Conclusion

The notification of the ₹22,919 crore electronics component manufacturing scheme underscores India’s commitment to building a self-reliant, globally competitive electronics industry. By nurturing domestic capabilities in core component manufacturing, India is taking a definitive stride toward achieving Atmanirbhar Bharat, reducing import dependency, and strengthening its position in the global supply chain.

The scheme is set to create new opportunities for manufacturers, generate employment, and catalyse innovation in India’s electronics sector—laying the foundation for long-term economic resilience.

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