The Union Cabinet has approved to offer financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of an electronic product under the Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS).
The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by developing core components, including, chipsets, and creating an enabling environment for the industry to compete globally.
It is, therefore proposed to provide an incentive of 25% on capital expenditure on plant, machinery, equipment, associated utilities and technology to the industrial units making investment for manufacturing of electronic components, semiconductors etc.
The scheme will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronic manufacturing ecosystem in the country.
Source : PIB