MeitY announces allocation of $350 billion for a new PLI scheme, aiming to make India a global hub for electronics components and boost exports by 25-28%.
The Ministry of Electronics and Information Technology (MeitY) is set to allocate over $350 billion to a proposed production-linked incentive (PLI) scheme for electronic components, aiming to make India a global hub for sub-assemblies. Identified sub-assemblies include camera modules, display assemblies, mechanical parts, battery packs, chargers, and vibrators. This initiative is not only expected to enhance value addition in products like mobile phones by 25-28% and boost electronics exports, but also to significantly contribute to the Indian economy by creating jobs and fostering technological innovation.
The required investments for sub-assemblies, which range from $5 billion to over $10 billion, depending on the production scale, signify the substantial financial commitment needed to establish India as a global hub for electronic components. Core components like camera module lenses demand more significant investments due to established global capacities.
The government’s strategic move to position India as a global sub-assembly export hub is further bolstered by its efforts in the semiconductor sector. Tata Electronics’ partner, Powerchip semiconductor manufacturing company (PSMC), is set to provide technology for manufacturing 28 nm wafers, and work is underway to develop technology for lower nodes. The recruitment of over 115 engineers to build an Indigenous tech team and the successful roadshows conducted to attract talent from Taiwan and the US instil confidence in the initiative’s execution.
MeitY is also deliberating on AI regulation, considering incorporating it into the Digital India Bill or enacting a specific AI law. Due to its complexity, the industry favours a separate Act for AI regulation.
