Union IT and Railways Minister Ashwini Vaishnaw has delivered a stark warning to India’s electronics manufacturing sector, indicating that new approvals and fund distributions under the Electronics Components PLI scheme could be halted if companies do not enhance their execution efforts.
Vaishnaw expressed his dissatisfaction, stating, “Not receiving adequate support from the industry… Not pleased with the progress,” and emphasized that “the industry must take further action.”
The minister was straightforward in his remarks, indicating that the government is prepared to implement strict measures, which could include ceasing additional approvals and even withholding payments for projects that have already been approved.
These comments come at a pivotal moment for the PLI scheme, introduced in 2021 to reduce India’s significant reliance on imports, as many electronic components continue to be sourced internationally.
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The warning exists despite the scheme being part of a ₹76,000 crore governmental initiative aimed at localizing electronics manufacturing, covering components like displays, PCBs, batteries, and camera modules.
Although 75 projects have been approved, with the promise of creating over 65,000 jobs, the rate of execution and incentive payouts has been notably slow.
Vaishnaw emphasized that mere incremental manufacturing is insufficient.
“Those who wish to continue without investment in design can exit the program,” he stated, highlighting the government’s commitment to fostering robust, in-house design capabilities. He cautioned that companies that do not prioritize R&D and design “will eventually be eliminated.”
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Urging for a structured plan, the minister called on companies to partner with universities and other stakeholders to enhance core competencies. “For us, the nation is paramount… design capabilities are essential,” he remarked, dismissing what he termed a business-as-usual mentality.
