Electronic Components and Semiconductors Manufacturing Promotion Scheme: As part of its Atmanirbhar Bharat Economic policies, the Indian government wants to make India a significant design and manufacturing hub in the Global Value Chain for Electronics. We are broadening and deepening our electronics manufacturing ecosystem as part of this. Under the aegis of the National Policy on Electronics 2019, the Government of India has launched many flagship schemes aimed at “Atmanirbhar Bharat – A self-reliant India” in order to establish India as a global leader in electronics manufacturing (NPE 2019).
Scheme for Promoting Electronic Components and Semiconductors Manufacturing
The Scheme for Promoting Electronic Components and Semiconductors Manufacturing (SPECS) is a step in the right direction. It was announced on April 1, 2020, and it offers a 25% discount on capital expenditures for a specific list of electronic goods that make up the downstream value chain of electronic products, such as electronic components, semiconductor/display fabrication units, ATMP units, specialized sub-assemblies, and capital goods for the production of the aforementioned goods.
The scheme is accepting applications until March 31, 2023. The Executive Committee (EC) had approved 23 applications as of February 28, 2022, with a total project outlay of Rs.6,816 crore and committed incentives of Rs 1,245 crore. The approved applications have a total employment potential of 29,021.
The Indian government has taken strategic steps and initiatives to grow the country’s electronics manufacturing sector and turn it into a global electronics manufacturing and design hub. Several proposals have been received from foreign investors under the following schemes as a result of various government initiatives:
- A total of 127 proposals for setting up units for manufacturing electronic goods/products are being considered under the Modified Special Incentive Package Scheme (M-SIPS), with a proposed investment of Rs 59,086 crore from companies with foreign shareholding. Out of the 127 proposals, 124 have been approved, with a total investment of Rs 56,341 crore. The reported capital expenditure for electronic equipment manufacturing by 104 approved applicants (out of a total of 124 approved applicants) is Rs. 19,600 crores.
- A total of 12 applications from foreign companies have been approved under the Production Linked Incentive Scheme (PLI) for Large Scale, Electronics Manufacturing, which was announced on April 1, 2020.
- A total of four applications from foreign companies have been approved under the Production Linked Incentive Scheme (PLI) for IT Hardware, which was announced on March 3, 2021.