[UPSC Prelims Focus] Electronics incentive schemes


  • The government has launched three incentive schemes with a total outlay of about ₹48,000 crore to boost large-scale manufacturing of electronics in the country.

UPSC Prelims Focus [CurrentAffairs.Academy – UPSC Prelims & Mains Current Affairs Preparation]


  • These three schemes are –
    1. Production Linked Incentive
    2. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
    3. Modified Electronics Manufacturing Clusters

Production Linked Incentive:

  • Targeted at mobile phone manufacturing and specified electronic components. The government initially plans to incentivise 10 firmsfive global and five local.
  • This Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS):

  • It shall provide financial incentive of 25% on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.

Modified Electronics Manufacturing Clusters:

  • It shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.


  • With the three new schemes, the government aims to manufacture electronics worth ₹8 lakh crore, while generating employment for about 10 lakh people in the next five years.