Electronics Sector Set for Major Job Expansion with New PLI Scheme: Ashwini Vaishnaw

The Indian government has taken a major step towards boosting domestic electronics manufacturing with the approval of a new Production-Linked Incentive (PLI) scheme. On Friday, the Union Cabinet sanctioned an outlay of ₹23,000 crore for the initiative, which aims to strengthen India’s position in the global electronics industry. While the approved amount is lower than the ₹40,000 crore requested by industry stakeholders, it is expected to drive large-scale production and create significant employment opportunities.

Targeting 60 Lakh Jobs in the Electronics Sector

The newly approved PLI scheme is expected to generate a massive employment boost, with a target of 60 lakh jobs in the electronics sector. This marks a substantial increase from the current 25 lakh jobs. According to Ashwini Vaishnaw, Minister of IT & Electronics, "The most important aspect of electronics manufacturing is its employment potential. We are now aiming towards 60 lakh employment opportunities."

Support for Key Electronics Components

The PLI scheme provides comprehensive support for essential electronic components, including printed circuit boards (PCBs), surface-mount (SMT) and non-SMT components, and semiconductors. The initiative is expected to boost domestic value addition in the manufacturing sector by reducing reliance on imported components.

Vaishnaw highlighted the significance of this move, stating, "With this scheme, we will be able to support a large number of components used in manufacturing finished goods, significantly increasing domestic production."

Explosive Growth in Electronics Manufacturing

India’s electronics manufacturing industry has witnessed rapid growth over the past decade. Production has expanded five times, while exports have surged six times, positioning electronics among the country’s top three exported commodities. The latest PLI scheme aims to further accelerate this momentum by encouraging large-scale investments and boosting global competitiveness.

Government’s Vision: A $300 Billion Electronics Industry by 2030

The long-term vision behind the scheme is to establish India as a global leader in electronics manufacturing. The government has set an ambitious target of creating a $300 billion electronics sector by 2030. "This scheme will play a critical role in achieving that target by enabling large-scale production and strengthening supply chains," Vaishnaw stated.

Focus on Export-Led Growth Beyond Import Substitution

While reducing dependency on imports is a key goal, the Indian government is also focusing on making India a global hub for electronics exports. "We are not just looking at import substitution; we want large-scale manufacturing of these components for the entire world," Vaishnaw emphasized. This approach aligns with India’s broader economic strategy of becoming a key player in global supply chains.

Regulatory Adjustments to Support Electronics Manufacturing

Recognizing the unique needs of the electronics manufacturing sector, the government is working on regulatory updates in collaboration with state governments and the labor ministry. Unlike traditional manufacturing units, electronics factories require controlled environments, such as clean and air-conditioned workspaces, and employ thousands of workers in a single location. Vaishnaw stated, "This calls for a different regulatory framework, and we are actively working to make necessary adjustments to support the sector."

Conclusion: A Transformative Step for India’s Electronics Industry

The approval of the ₹23,000 crore PLI scheme marks a transformative step for India’s electronics industry. By fostering domestic manufacturing, increasing employment, and focusing on export-led growth, the initiative is set to position India as a leading electronics manufacturing hub. With continued government support and industry participation, the sector is poised for unprecedented expansion, contributing significantly to India’s economic growth in the coming years.