Elcina proposes a ₹72,500 crore support package, with ₹17,900 crore allocated for capital investments and ₹54,600 crore under the PLI scheme. India faces a ₹21 lakh crore material gap, requiring $36 billion in investments.
The Electronics Industries Association of India (Elcina) has proposed a ₹72500 crore financial package to boost electronic component manufacturing in the country and reduce dependency on imports. India’s electronics manufacturing industry is projected to reach $500 billion by 2030, but a ₹21 lakh crore raw material supply gap could pose a major challenge. This gap, driven by heavy reliance on imports, threatens India’s efforts to become self-reliant in the electronics sector. Elcina’s proposal includes ₹17900 crore for capital investments and ₹54600 crore under the Production Linked Incentive (PLI) scheme to encourage manufacturers to expand production.
Non-semiconductor components, including printed circuit boards, active components and metallic parts, contribute to 40% of the total manufacturing cost of electronic goods. Elcina Secretary General Rajoo Goel explained that investors are hesitant to fund component manufacturing due to lower returns, high operational costs and long timeframes for profit. However, with government support, the sector could attract $36 billion in new investments by 2030. This would help reduce the supply gap to $102 billion (₹8.63 lakh crore) and generate 50 lakh jobs, as the industry is labour-intensive. These aspects play a vital role in India’s electronics manufacturing and account for a large share of production costs.
India currently produces $13 billion worth of non-semiconductor components annually. Without proactive support and investments, the production of non-semiconductor components might grow to only $37 billion by 2030, leaving a significant shortfall. Elcina strongly urges the government to support this sector, boost local production and strengthen India’s electronics supply chain. While the government has already invested ₹1.52 lakh crore in semiconductor initiatives, Elcina highlights the need for similar support for non-semiconductor components to reduce imports and build a strong electronics manufacturing ecosystem.
