New Delhi, Feb 19 (KNN) India is embarking on an ambitious mission to fortify its electronics manufacturing sector, aiming to reduce dependency on imports from countries like China, Thailand, and Vietnam.

The government is devising a new production-linked incentive (PLI) scheme specifically tailored for electronics components, with hopes to attract major players from China, South Korea, Taiwan, and the US.

The scheme seeks to lure companies that predominantly operate manufacturing facilities in China, encouraging them to establish units in India, officials told moneycontrol on Monday.

The initiative aligns with India's broader objective of achieving USD 300 billion in electronics manufacturing by 2026, earmarking USD 18 billion for components alone.

"We want to bring a substantial portion of components for mobile handsets to India through the new PLI scheme," a senior IT ministry official stated.

The scheme, anticipated to have an outlay of approximately Rs 20,000 crore, aims to significantly elevate domestic value from the current 15 percent.

Key to this endeavour is the creation of a robust ecosystem for electronics components, crucial for assembling products.

The government is soliciting input from industry stakeholders to shape the PLI scheme effectively.

This includes a comprehensive list of electronics components and insights into the challenges hindering local manufacturing.

The emphasis lies not only on enhancing competitiveness but also safeguarding the electronics manufacturing ecosystem fostered by existing PLI schemes for mobile handsets and IT hardware.

"We recognise the transformative impact of electronics manufacturing on job creation and overall economic growth. To sustain this momentum, we must bolster competitiveness and increase the domestic supply of components," noted another senior ministry official.

India's Ministry of Electronics and IT (Meity) is spearheading these efforts, underscoring the strategic importance of reducing reliance on imports and nurturing indigenous capabilities in electronics manufacturing.

As consultations with industry stakeholders progress, the nation is poised to chart a course towards self-reliance and global competitiveness in the electronics sector.

(KNN Bureau)