Electronic Manufacturing

The Union Cabinet recently approved 3 scheme to boost the domestic manufacturing of electronics and also to attract investments in the sector.

Production-linked Incentive Manufacturing Scheme

The Cabinet approved the production linked incentive manufacturing scheme for the electronics sector and it is worth 40,995 crore INR. It will give an incentive of 4 to 6% on incremental sale of certain goods manufactured in India over a period of 5 years. The goods covered under the scheme includes mobile phones and ATMP units (assembly, testing, marking and packaging).


The SPECS or Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors was also approved by the Cabinet. It provides 25% financial incentive on capital expenditure for a list of electronic goods like ATMP units, electronic components, specialised sub-assemblies and others downstream value chain of electronic products. The funds allocated is for a period of 8 years. It will be applicable to investments in new units, capacity expansion and units’ diversification.

EMC 2.0

The version 2.0 of Electronics Manufacturing Clusters scheme (EMC 2.0) was also approved by the Cabinet recently. It is a scheme to create industry specific infrastructure and facilities like common facility centres, factory sheds, etc. The allocation for the scheme is 3,762.25 crore INR for a period of 8 years. It will provide up to 50% financial assistance to project costs with a ceiling of 70 crore INR per 100 acres of land for EMC projects. For common facility centre projects, assistance of 75% of the project costs with a ceiling of 75 crore INR.

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