India’s electronics manufacturing sector has been growing rapidly, thanks to a series of government schemes and strong policy support. If you’re an aspiring entrepreneur, MSME owner, or an established electronics manufacturer in Gujarat, then knowing which schemes can benefit your business is super important.
In this blog, we’ll walk you through all the key schemes, state-level policies, and support initiatives available to boost your electronics manufacturing journey in India. Let’s get into it.
1. Key Government Schemes Supporting the Electronics Industry
📌 PLI Scheme for Electronics Manufacturing
The Production Linked Incentive (PLI) Scheme is a major game-changer. It rewards manufacturers based on their incremental sales. Here’s what you should know:
- Incentives up to 6% on incremental sales for 5 years.
- Focus sectors: mobile phones, LED products, semiconductor components, etc.
- Companies like Samsung, Foxconn, and Dixon are already approved under this scheme.
- Over ₹38,600 crore has been allocated for the electronics sector.
For small players and MSMEs, this is a golden opportunity to scale up.
📌 SPECS – Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors
This scheme is focused on encouraging investment in the component ecosystem.
- 25% capital subsidy for eligible expenditure.
- Covers products like capacitors, resistors, connectors, displays, etc.
- Good option for component-level manufacturers in India.
📌 Modified Electronics Manufacturing Clusters (EMC 2.0)
EMC 2.0 is all about creating plug-and-play infrastructure for electronics companies.
- 50% of the project cost is supported by the government.
- Especially useful for startups looking to operate inside industrial parks.
- Gujarat has a few such clusters already in progress.
2. Make in India Initiative for Electronics
The Make in India initiative was launched to boost local manufacturing across industries, including electronics.
- FDI in electronics surged from US$ 1.2 billion in 2014 to over US$ 8 billion by 2023.
- Focuses on making India a global manufacturing hub.
- Policies like zero duty on capital goods import under EPCG support this movement.
If you’re an electronics manufacturer in Gujarat, this initiative aligns perfectly with state-level manufacturing goals.
3. National Policy on Electronics (NPE) 2019
The NPE 2019 aims to make India a global electronics powerhouse. Here’s what it targets:
- Achieve a turnover of US$ 300 billion in electronics manufacturing by 2025.
- Generate 1 crore jobs across the electronics value chain.
- Promote sub-sectors like medical electronics, automotive electronics, and industrial IoT.
The policy encourages both large-scale and niche segment manufacturers.
4. State-Level Incentives and Subsidies
Different Indian states have different electronics policies. For example:
✅ Gujarat Electronics Policy Highlights:
- Up to 25% capital subsidy on fixed capital investment.
- Reimbursement of electricity duty for 5 years.
- Special incentives for electronics manufacturing clusters in Gandhinagar, Vadodara, and Ahmedabad.
If you’re an electronics manufacturer in Gujarat, the state government is actively encouraging innovation and investment.
Other states like Tamil Nadu and Uttar Pradesh also offer attractive incentives, but Gujarat has the advantage of being a top industrial hub with excellent infrastructure.
5. Special Economic Zones (SEZs) and EHTP Schemes
Electronics Hardware Technology Parks (EHTP) and SEZs are ideal if you want to export your products.
- Enjoy customs and excise duty exemptions.
- No GST on procurement of goods and services within SEZ.
- Faster clearances and simplified procedures.
You can also convert your unit into an EHTP to claim benefits under the EHTP Scheme governed by the Ministry of Electronics and IT.
6. Export Incentives for Indian Electronics Manufacturers
India’s electronics exports crossed ₹1.85 lakh crore in FY 2023. If you want to tap into this opportunity, here’s how government supports you:
- RoDTEP (Remission of Duties and Taxes on Exported Products) replaces MEIS and helps reclaim embedded taxes.
- Export Credit Guarantee Corporation (ECGC) provides insurance for international trade.
- Use India’s FTAs (Free Trade Agreements) to export to markets like UAE, ASEAN, and Australia with minimal duty.
7. Government Financial Support & Soft Loans
Need capital support? These schemes can help:
- SIDBI offers soft loans and working capital loans to electronics MSMEs.
- Credit Linked Capital Subsidy Scheme (CLCSS) gives 15% subsidy on capital investment for tech upgradation.
- Banks also offer interest subvention schemes for eligible manufacturing units.
8. Skill Development & R&D Support
Workforce and R&D are essential pillars of growth.
- ESSCI (Electronics Sector Skill Council of India) provides training to technicians and engineers in electronics.
- The Ministry of Electronics & IT (MeitY) offers R&D support through Centers of Excellence (CoEs) and innovation labs.
- Gujarat itself is promoting skill development through industrial training institutes (ITIs) focused on electronics and mechatronics.
9. Compliance & Certification Assistance
To sell or export, certifications are often mandatory.
- BIS Certification is required under the Compulsory Registration Scheme (CRS) for 76+ product categories.
- MeitY offers financial support for setting up testing labs and obtaining global certifications like CE, UL, or ISO.
- Compliance support is especially useful for MSMEs looking to expand globally.
10. How to Apply for These Schemes
The best way to apply:
- Visit https://meity.gov.in or respective state portals.
- Keep your business registration, financials, and project reports ready.
- Consult local industry associations or export councils for updates.
Pro tip: A good project report and clarity in your proposal can fast-track your application process.
11. Real-Life Example: How a Gujarat-Based Company Benefited
At Jayshree Instruments, a leading electronics manufacturer in Gujarat, we leveraged EMC benefits and capital subsidies to scale our PCB and cable assembly operations. The support we received helped us build a smart production line, reduce costs, and deliver higher quality products across industries like automation, medical devices, and industrial systems.
12. Final Thoughts
India is aiming to be a global hub for electronics manufacturing. And with the variety of schemes available today, there has never been a better time to start or grow as an electronics manufacturer in Gujarat or anywhere in India.
From subsidies and tax reliefs to skill development and export support, the government is providing a full ecosystem to make you successful. Don’t miss the opportunity—apply now, explore your eligibility, and take your electronics business to the next level!