Analysis based on |
Editorial published on In IT policy pipeline: Rs 23k-crore electronic subsidy scheme for value-add and jobs in The Indian Express on March 6th, 2025 |
Topics for UPSC Prelims |
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Topics for UPSC Mains |
Government Policies for Employment Creation, Foreign Direct Investment (FDI) |
The government of India has introduced a new scheme to help produce more electronics in the country. The name of the scheme is the Rs 23,000 crore electronic subsidy scheme. The purpose of the scheme is to make India a leader in electronics production through the generation of more employment opportunities and reducing the use of importing electronics components from other places. Previous to this, India would manufacture smartphones but not a lot of the components that are placed inside them. Now, with this new plan, the government wants to turn it around and manufacture more meaningful electronic components in India.
The electronic subsidy scheme is a concept in which the Indian government will provide funds to companies that manufacture essential parts of electronics like display modules, camera parts, batteries, and circuit boards. The scheme is important because India imports these parts from other countries at a high cost. The idea is to manufacture these parts within India so that the country will not need to import them from other countries anymore.
The government is giving Rs 23,000 crore (a huge amount of money) over the next six years. This will help companies set up or modernize their factories to make these components. Through this, the government wishes to create more employment for Indians and allow India to grow its electronics industry.
The key aims of the Rs 23,000 Crore Electronic Subsidy scheme are:
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The main features regarding scheme are as follows:
This scheme is highly significant as it will make India more self-dependent in electronics production. The following are some important reasons why:
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India has managed to get big firms such as Apple and Samsung to produce smartphones in the country over the last few years. The components used in these phones are largely imported, though. India's electronics production currently stands at just 10% of the overall production in the country. The majority of the components, such as semiconductors, batteries, and integrated circuits, are still purchased from abroad.
Then, after oil, the second-highest import of electronics is by India, and vast sums are used in importing the parts. The government has come to understand that the demand for the spares will grow over time, hence the reason the new scheme is of significance.
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Some of the challenges that face India's electronics manufacturing industry include:
The scheme was made with the aim of overcoming quite a lot of these challenges:
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For the purpose of fostering electronics advancement, the government has already launched other schemes. Some of the major initiatives are as follows:
The Rs. 23000 crore scheme of electronic subsidy is bold and much needed to drive the country's electronics manufacturing industry. It hopes to lower the import financing of electronic components by enhancing domestic production with a top priority on job creation and making the nation an electronics manufacturing hub. All such efforts will strengthen India's economy and position itself firmly in the international market in the form of becoming self-sufficient.
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