The government has reportedly started consultations with the industry for the production linked incentive (PLI) scheme for electronics components manufacturing, which is likely to have an outlay of around Rs 200 billion.
According to industry sources, the Ministry of Electronics and Information Technology (MeitY) is aiming to get funds allocated for the scheme in the budget that will be present in July 2024. While the details of the scheme outlay will be decided after the consultations, the industry is of the view that the amount should exceed Rs 200 billion to get the desired results in setting up an ecosystem.
As part of the consultation process, MeitY has asked the industry to provide details about India’s import dependency for electronics components for the last five years as well as the components made in India during the same period. Details have also been sought for key components to be localised for building a semiconductor ecosystem. For formulating a roadmap for building an ecosystem, electronics components have been mapped into different categories such as capex-intensive, labour-intensive, scale-driven and components that require state-of-the-art technology.
