Union Budget 2026: Centre doubles electronic components manufacturing scheme outlay to Rs 40,000 crore

Hyderabad: In a major boost to India's electronics sector, the Centre will nearly double the outlay of its Electronics Components Manufacturing Scheme from Rs 22,919 crore to Rs 40,000 crore. Launched in April 2025, the scheme has already secured investment commitments exceeding its initial targets.

“The scheme has doubled the targets with strong investment commitments. We propose increasing the outlay to Rs 40,000 crore to capitalize on this momentum,” Union Finance Minister Nirmala Sitharaman told the Lok Sabha while presenting the Budget on Sunday.

The scheme targets key components like display modules, camera sub-assemblies, printed circuit board assemblies (PCBAs), lithium cell enclosures, resistors, capacitors, and ferrites essential for smartphones, laptops, microwave ovens, refrigerators, toasters, and other gadgets.

It offers tailored fiscal incentives like turnover-linked, capex-based, or hybrid models to address industry challenges and build a robust domestic manufacturing ecosystem. The goal is to attract global and domestic investments across the value chain, boost Domestic Value Addition (DVA), and integrate India into Global Value Chains (GVCs) for higher electronics exports.

Approved by the Union Cabinet in March 2025, the scheme aims to drive Rs 4.56 lakh crore in production and Rs 59,350 crore in incremental investments. So far, 46 applications have been approved, committing Rs 54,567 crore and creating about 51,000 direct jobs. This expansion follows the smartphone PLI scheme's almost coming to closure, positioning components manufacturing as the next growth driver.