The Indian government has taken a significant step toward strengthening its domestic manufacturing capabilities by approving a substantial new subsidy program. In a decision made today, India’s federal cabinet greenlit a nearly $2.7 billion initiative specifically designed to promote electronic component manufacturing and create new employment opportunities across the country.
Building on Previous Manufacturing Success
This latest government initiative builds upon India’s already successful production-linked incentive scheme in the smartphone manufacturing sector. That program has proven effective in attracting major global technology players, including Apple and Samsung Electronics, who have established operations that produce and export billions of dollars worth of mobile phones from India.
Targeting Critical Electronic Components
The newly approved subsidy program takes aim at several key electronic components that form the backbone of modern technology devices. These include displays, camera modules, mobile phone and laptop cases, and multilayer printed circuit boards (PCBs)—all essential elements in contemporary electronics manufacturing.
Long-Term Vision and Economic Impact
According to India’s technology minister, Ashwini Vaishnaw, the program will operate over a six-year timeframe and deliver benefits across multiple industrial sectors. The initiative is expected to positively impact the electronics, communications, medical devices, consumer electronics, automotive, and power industries.
Investment and Job Creation Projections
The Indian government has set ambitious targets for the program’s economic impact. Officials anticipate that the initiative will attract investment totaling approximately ₹ 593.5 billion while simultaneously creating more than 91,000 direct jobs.
This strategic move aligns with India’s broader economic goal of reducing dependency on imported electronic components while positioning itself as a global manufacturing hub.
