Prelims level : Governance - Institutional Reforms Mains level : GS-II Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
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Why in News?

  • In a bid to boost large-scale electronics manufacturing in India, the Union Cabinet approved three schemes, including a production-linked incentive scheme, with a total outlay of almost ₹48,000 crore.
  • The National Policy of Electronics 2019 (NPE 2019) replaces the National Policy of Electronics 2012 (NPE 2012).


  • The schemes are expected to attract new investments worth at least ₹50,000 crore in thesector, while generating more than five lakh direct and 15 lakh indirect jobs.

PLI for Large Scale Electronics Manufacturing:

  • The Production-linked incentive (PLI) scheme for Large Scale Electronics Manufacturing aims to attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units.
  • It has at a budgetary outlay of Rs. 40,995 crore for five years.
  • The scheme will offer an incentive of 4-6% on incremental sales of goods manufactured in
    • India and is expected to create a total of 8 lakh jobs.

Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS):

  • SPECS will provide financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of an electronic product.
  • The scheme will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronic manufacturing ecosystem in the country.
  • The total cost of the scheme is Rs.3,285 crore.

Electronics Manufacturing Clusters (EMC) 2.0:

  • It aims at creating quality infrastructure with a minimum area of 200 acres along with industry-specific facilities such as common facility centres, ready-built factory sheds/ plug-and-play facilities.
  • The scheme will provide financial assistance upto 50% of the project cost subject to ceiling of Rs.70 crore per 100 acres of land and For Common Facility Centre (CFC), financial assistance of 75% of the project cost subject to a ceiling of Rs.75 crore will be provided.
  • It has outlay of Rs. 3,762 crore over a period of 8 years.

Salient Features of National Policy on Electronics 2019 NPE 2019:

  • Create eco-system for globally competitive Electronics System Design and Manufacturing (ESDM) sector
  • Provide incentives and support for manufacturing of core electronic components.
  • Provide special package of incentives for mega projects which are extremely high-tech and
    • entail huge investments, such as semiconductor facilities display fabrication, etc.
  • Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
  • Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology.
  • Provide incentives and support for significantly enhancing availability of skilled manpower, including re-skilling.
  • Special thrust on Fabless Chip Design Industry, Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
  • Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
  • Promote trusted electronics value chain initiatives to improve national cyber security profile.

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