India's Electronics Manufacturing Clusters 2.0 scheme set to create 1.80 lakh jobs with Rs 1.46 lakh crore investment

New Delhi [India], December 17 : The central government projects that the Modified Electronics Manufacturing Clusters (EMC 2.0) scheme will generate approximately 1.80 lakh jobs. Official data shows that approved projects now span 10 states across the country. These locations expect a total investment of over Rs 1.46 lakh crore to build a strong electronics production system in India.

According to a press release from the Ministry of Electronics & IT, the government notified the EMC 2.0 scheme in April 2020. This initiative supports the creation of world-class infrastructure by funding specific clusters with shared facilities. These areas provide manufacturers with industrial plots and ready-built factory sheds. These "plug and play" facilities allow companies to start their work quickly without building everything from scratch.

The government has approved 11 electronics manufacturing clusters and two common facility centres so far. These projects cover nearly 4,400 acres of land. The total cost for these projects sits at Rs 5,226.49 crore. To help this growth, the central government provides financial assistance worth Rs 2,492.74 crore. Each cluster sets aside at least 10 per cent of its space for ready-made factory buildings.

The Ministry reports that 123 manufacturers have already committed to investing Rs 1,13,000 crore in these approved areas. Some of these companies have already begun their operations. Nine units started production and spent Rs 12,569.69 crore so far. These active units currently provide jobs to 13,680 people as the project moves forward across different states.

An independent study by the National Institute for Micro, Small and Medium Enterprises recently assessed the impact of the scheme. The study found that the clusters help develop better supply chains and lower the cost of moving goods. The assessment also noted that the program improves skill development and creates many direct and indirect jobs within the local ecosystem.

"The assessment highlights accelerated development of electronics manufacturing infrastructure, improved supply-chain responsiveness, availability of RBF/Plug-and-Play facilities, cost-efficient logistics, and significant direct and indirect employment generation, along with enhanced skill development within the cluster ecosystem," the release said.

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