Three Schemes launched to boost Electronic Manufacturing Sector

The Government of India has launched three incentive schemes to boost electronics manufacturing in the country. The scheme will provide incentives of 4% to 6% when a company shows increased sales on electronic products.


The incentives offered under the scheme are of worth Rs 48,000 crores. The companies shall claim the incentives from August 1, 2020. These include

  • Production Linked Incentive Scheme
  • Electronics Manufacturing Clusters 2.0 (EMC 2.0)
  • Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS)

Production Linked Incentive Scheme

This is the largest scheme of all the three schemes. It will provide 4% to 6% incentives on electronics products that show incremental sales. This includes electronic products such as Printed Circuit Boards, photopolymer film, Marking and Packaging Units.

EMC 2.0

The main objective of the scheme is to provide support to companies that are creating world class infrastructure in the Electronics sector. The scheme has been launched under National Policy for Electronics 2019. It aims to make India a global hub of mobile manufacturing.

Key Features

The scheme aims to provide grant assistance to set up both brown field and green field EMCs. The first phase of EMC had approved 20 Green field projects and 3 common facility centres in around 15 states. The EMC 2.0 has been launched strengthen the infrastructure base of the country in Electronics sector.


The scheme provides incentive of 25% of the capital spent on establishing an electronics plant, equipment, machinery, technology, etc.


Leave a Reply