Scheme for Promotion of Electronic Components and Semiconductors (SPECS)

SPECS is a step to make India a significant Electronic System Design and Manufacturing hub in the global value chain for electronics.

About SPECS :

The government of India has launched many flagship schemes which are aimed at “Atmanirbhar Bharat – A self-reliant India” under the aegis of the National Policy on Electronics 2019 (NPE 2019).

SPECS aims to offer a financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of electronic products.

The scheme was notified on April 1, 2020.

The scheme will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronic manufacturing ecosystem in the country.

Details :

The National Policy on Electronics 2019 (NPE 2019) aims at positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

GoI has also launched many other flagship schemes for ESDM like –

Product Linked Incentive (PLI) – The Scheme extends an incentive of 6% to 4% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years.

This scheme was notified on April 1, 2020.

Under the first round of the PLI scheme for Large Scale Electronics Manufacturing, 16 companies have been approved.

The second round of the PLI Scheme for Large Scale Electronics Manufacturing was launched in March 2021 for incentivising Electronic Components.

Under the Second Round, incentives of 5% to 3% shall be extended on incremental sales (over base year i.e., FY 2019-20) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four years.

The Cabinet also approved a comprehensive program for the development of a sustainable semiconductor and display ecosystem in the country with an outlay of ₹ 76,000 crore.

The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.