Indian Economy
Electronics Manufacturing Clusters (EMC2.0) Scheme
- 23 Mar 2020
- 4 min read
Why in News
Recently, the Union Cabinet has approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
- EMC 2.0 is a scheme for development of world class infrastructure along with common facilities and amenities through Electronics Manufacturing Clusters (EMCs).
Background
- The Ministry of Electronics and Information Technology (MeitY) notified the Electronics Manufacturing Clusters (EMC) Scheme in October, 2012.
- The objective of the scheme was to provide support for creation of world class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) sector.
- The scheme provided grant assistance for setting up of both Greenfield and Brownfield EMCs across the country.
- For projects in Greenfield Electronics Manufacturing Clusters, assistance is provided to the extent of 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land.
- For Brownfield EMCs, 75% of the cost of infrastructure is provided, subject to a ceiling of Rs. 50 crore.
- Under the scheme, 20 Greenfield EMCs and 3 Common Facility Centres (CFCs) have been approved in 15 states across the country.
- There was a need for EMC 2.0 for further strengthening the infrastructure base for the electronics industry in the country and deepening the electronics value chain. Thus, EMC 2.0 was approved.
Key Features of the EMC 2.0
- The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme is in line with National Policy for Electronics (NPE), 2019 to make India a global hub for mobile and component manufacturing.
- The scheme would support setting up of Electronics Manufacturing Clusters (EMCs).
- The focus is on development of basic infrastructure, amenities and other common facilities for the ESDM sector.
- The scheme would also support setting up of Common Facility Centres (CFCs).
- They would be set up in an area where a significant number of existing manufacturing units are located.
- The focus is on upgrading common technical infrastructure and providing common facilities for the units in EMCs, Industrial Areas/Parks/industrial corridors.
Expected Benefits
- A robust infrastructure base for the electronic industry.
- New investments in the Electronics System Design and Manufacturing (ESDM) sector.
- Increased employment opportunities in manufacturing units.
- Revenue in the form of taxes paid by the manufacturing units.
- Help development of the entrepreneurial ecosystem.
- Drive innovation and catalyze the economic growth of the country.
Electronic Production in India
- India’s electronics production has increased from Rs. 1,90,366 crore (US$29 billion) in 2014-15 to Rs. 4,58,006 crore (US$ 70 billion) in 2018-19, at a Compound Annual Growth Rate (CAGR) of about 25%.
- India’s share in global electronics manufacturing grew from 1.3% (2012) to 3.0% (2018). Electronics production accounts for 2.3% of India’s GDP at present.
