Electronics Sector Current Affairs - 2020

GoI launches three new schemes to boost Electronics sector

On June 2, 2020, the Union Minister Ravi Shankar Prasad launched three new schemes to bbost electronics sector. They are Production linked incentive scheme, cluster scheme (EMC 2.0) and component manufacturing scheme (SPECS).

The schemes were approved by the Union Cabinet in March 2020.

About the schemes

The schemes are expected to attract investments. They will increase the manufacturing of mobile phones and their parts to around Rs 10 lakh crores by 2025. Also, the scheme will help generate 5 lakhs direct and 15 lakhs of indirect jobs.

Production Linked Incentive Scheme

The scheme will provide an incentive of 4% to 6% to the goods manufactured in India.


The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) will provide incentive of 25% on the capital expenditure. This is extended to certain identified lists such as semiconductor devices, electronic goods, display fabrication units, etc.

EMC 2.0

The Modified Electronics Manufacturing Clusters (EMC 2.0) will support in creating world class infrastructure. The scheme will help in attracting global electronics manufacturers and their supply chains.

Current Scenario

India is now the second largest mobile manufacturing country in the world. Today there are more than 200 mobile manufacturing units in the country. In 2014, the manufacturing worth of the country was Rs 1,90,366 crores. Today, it has increased to Rs 4,58,000 crore. The global share of electronics has increased from 1.3% in 2012 to 3% in 2018.

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.