India’s Big Investment in Electronics and Semiconductors
Rs 8,803.14 Crore Boost
India has made a significant investment of Rs 8,803.14 crore under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). This investment has led to production worth Rs 18,083.55 crore, as informed by Jitin Prasada, Minister of State for Electronics & Information Technology, in a written reply to Rajya Sabha.
The SPECS scheme, which was notified on April 1, 2020, and open for applications until March 31, 2024, provides a 25% financial incentive on capital expenditure for various electronic components, including e-waste recycling, micro/nano-electronic components, and solar cells.
Additionally, the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, launched in April 2020, aims to boost domestic manufacturing and attract investment in the mobile phone value chain. The PLI scheme offers a 3-6% incentive on incremental sales of goods manufactured in India. By June 2024, this scheme has attracted Rs 8,390 crore in investments, resulting in production worth Rs 5,14,960 crore.
These initiatives are part of the government’s Atmanirbhar and Make in India plans to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports.
Doubts Revealed
Rs 8,803.14 Crore -: This is a large amount of money. In India, ‘Rs’ stands for Rupees, which is the currency. ‘Crore’ is a term used in India to represent ten million. So, Rs 8,803.14 crore means 88,031.4 million Rupees.
Semiconductors -: Semiconductors are materials that can conduct electricity under some conditions but not others. They are used in electronic devices like computers and smartphones to control the flow of electricity.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors -: This is a government plan to help companies in India make more electronic parts and semiconductors. The government gives money to these companies to help them build factories and buy equipment.
25% financial incentive -: This means the government will give back 25% of the money that companies spend on building factories and buying equipment. For example, if a company spends 100 Rupees, the government will give them 25 Rupees back.
Production Linked Incentive Scheme for Large Scale Electronics Manufacturing -: This is another government plan to help big companies in India make more electronic products. The government gives money to these companies based on how much they produce.
Rs 8,390 crore -: This is another large amount of money. It means 83,900 million Rupees.
Rs 5,14,960 crore -: This is a very large amount of money. It means 5,149,600 million Rupees.
June 2024 -: This is a date in the future. It means the month of June in the year 2024.