In Short:
The Union Ministry of Electronics and Information Technology is working on a new scheme to support Indian electronics brands. The scheme aims to build globally recognized brands and create an electronics ecosystem, targeting Indian companies. The previous SPECS scheme ended on March 31. The focus is on creating local electronics brands and the importance of product value lying in the brand. The government is also emphasizing the creation of a comprehensive electronics ecosystem.
Government Working on New Scheme to Support Indian Electronics Brands: MeitY Secretary
The Union Ministry of Electronics and Information Technology (MeitY) secretary S Krishnan has announced that the Centre is developing a new scheme to assist Indian electronics brands.
New Scheme for Building Globally Recognized Electronics Brands
Speaking at an event in Chennai, Krishnan mentioned that the new scheme aims to build globally recognized electronics brands and create a strong electronics ecosystem. This scheme will replace the previous SPECS scheme and will specifically target Indian companies.
Focus on Local Electronics Brands
Emphasizing the significance of product value lying in the brand, Krishnan highlighted the need for focusing on building local electronics brands. He stated that the assembly and other processes often yield minimal margins, and the key is to have globally recognized Indian brands in the market.
The previous scheme, Promotion of Manufacturing Electronic Components and Semiconductors (SPECS), concluded on March 31 this year. It was aimed at supporting downstream electronics components and fostering a robust manufacturing ecosystem.
Creating a Strong Ecosystem
Krishnan emphasized the importance of not just setting up chip fabrication and assembly facilities but also creating a complete ecosystem that includes testing, marking, packaging, and design. He mentioned that a semiconductor fabrication requires close collaboration with around 300 vendors supplying various materials.
Government’s Efforts in Boosting Semiconductor Space
Under the government’s initiatives to enhance the semiconductor industry, Krishnan mentioned the Production Linked Incentives (PLI) for establishing large manufacturing and assembly facilities, along with design-linked incentives to support the design ecosystem. He also highlighted the positive impact of global chip designing companies setting up operations in India, leading to the creation of new startups.
