Cabinet approves landmark initiative targeting 91,600 jobs and ₹4.56 lakh crore production – Chinese JVs permitted with safeguards.
New Delhi, March 28 – In a strategic move to reduce India’s crippling electronics component imports, the Union Cabinet approved a groundbreaking Production-Linked Incentive (PLI) scheme for passive components with ₹22,919 crore outlay. The initiative aims to slash the projected $248 billion (₹21 lakh crore) import deficit by 2030 while creating nearly 1 lakh direct jobs in the electronics value chain.
Scheme Highlights: By the Numbers
💰 Financial Outlay: ₹22,919 crore over 6 years
📈 Expected Output: ₹4.56 lakh crore production value
💼 Employment: 91,600 direct jobs + ancillaries
🏭 Investment Target: ₹59,350 crore private capital
What Are Passive Components?
- Critical Parts: Resistors, capacitors, inductors, connectors
- Market Size: 13bndomesticproduction(2022)→13bndomesticproduction(2022)→37bn by 2030
- Import Dependence: 78% of current demand met through imports
Game-Changing Provisions
🔌 Sectors Covered: Telecom, EVs, Medical Devices, Consumer Electronics
🇨🇳 China Policy: Case-by-case JV approvals with Home Ministry oversight
🏆 First-Mover Advantage: Early bird incentives for quick scale-up
Why This Matters Now?
- Apple Effect: 64 Indian suppliers already operational
- Geopolitical Shift: Reducing reliance on China/Vietnam imports
- Cluster Development: Pune-Coimbatore-Bangalore-Rajkot corridor emerging
Corporate Moves Already Underway
• Dixon Technologies: JV with China’s HKC for display modules (Q3 2025 launch)
• Zetwerk: Exploring acquisitions in precision components
• Tata Electronics: In talks for capacitor manufacturing
Ashwini Vaishnaw, IT Minister:
“This completes our electronics ecosystem – from semiconductors (ISMC) to components. We’re building capital goods too – the machines that make machines.”
Import-Substitution Potential
| Component | Current Import | 2030 Target |
|---|---|---|
| MLCC Capacitors | $2.8bn | 40% localization |
| PCB Boards | $4.1bn | Made-in-India for Apple/Vivo |
| Connectors | $1.2bn | EV-driven demand surge |
Investor Opportunities
✅ Margin Boost: 18-22% PLI incentives on incremental sales
✅ Export Push: 25% production can service global supply chains
✅ Tech Transfer: Chinese partnerships with IP safeguards
Industry Voice (Elcina):
“Every ₹1 invested in components saves ₹5 in finished goods imports.”
What’s Next?
- April 2024: Scheme guidelines release
- Q2 2024: First approvals for JV proposals
- 2025 Target: 15-20% import substitution
Optimized for Decision Makers
📌 Policy Angle: How China JVs will be regulated
📌 Business Case: ROI calculations for manufacturers
📌 Employment Map: Likely hubs (Tamil Nadu, Karnataka, UP)
Sources: MoE&Y, Elcina reports, company disclosures
This version transforms a cabinet approval into:
- A strategic import reduction plan
- A geopolitical business opportunity
- A manufacturing investment guide
- A tech supply chain analysis
With clear takeaways for:
- Electronics manufacturers
- Component suppliers
- State industrial policies
- FDI analysts tracking China+1
