[Home](/)/[Resources](/resources)/MeitY Electronics Policy IndiaPolicy # MeitY Electronics Policy: SPECS Scheme, National Policy on Electronics, and Government Procurement Rules MeitY's policy stack is simultaneously a compliance burden and a financial opportunity. Understanding SPECS, PLI, and PMA together lets hardware companies plan India market entry and manufacturing investment with accurate numbers. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Findia-meity-electronics-policy) At a glance Ministry MeitY Key scheme SPECS (capital goods incentive) Policy NPE 2019 Procurement PMA (Preferential Market Access) ## Core MeitY schemes and policies affecting electronics companies ### Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) A 25% capital expenditure incentive for manufacturers of specified electronic components and semiconductors in India. SPECS targets the component supply chain rather than finished goods — covering passive components, PCBs, display modules, connectors, sensors, and other sub-assemblies. Companies investing in greenfield or brownfield component manufacturing facilities can apply for SPECS over a five-year disbursement period. ### National Policy on Electronics 2019 (NPE 2019) The overarching strategic framework for India's electronics sector, targeting USD 300 billion in electronics production and 10 million jobs by 2026. NPE 2019 drives the PLI, SPECS, and Electronics Clusters schemes. It also emphasises domestic value addition, import substitution, and the development of a robust component ecosystem — setting the political context that explains why import monitoring and mandatory BIS certification have tightened over the NPE period. ### Preferential Market Access (PMA) Government procurement policies that require domestic value addition for electronics purchased by government ministries and public sector undertakings. PMA applies to a specified list of products — including telecom equipment, set-top boxes, tablets, and desktops — and sets minimum domestic value addition (DVA) percentages. Companies supplying electronics to the government without meeting PMA thresholds risk tender disqualification. ### Electronics Clusters scheme MeitY-subsidised industrial cluster development for electronics manufacturing parks. Companies locating production in notified Electronics Manufacturing Clusters (EMCs) benefit from shared infrastructure (power, water, logistics, testing labs) developed with government capital subsidy. Cluster membership can also simplify SPECS and PLI applications because common infrastructure costs are shared across tenants. ## How to navigate MeitY policy as an electronics company 01 Check whether your product is on the PMA notification list — if you supply to government entities directly or through a tender, PMA domestic value addition requirements apply. The Ministry of Electronics publishes the current PMA product list and DVA percentages; verify against the most recent gazette notification before bidding on government contracts. 02 Review SPECS eligibility if you are investing in manufacturing plant and machinery in India. SPECS provides a 25% capital expenditure incentive over five years for a defined list of electronic components and sub-assemblies. The component list is published in the SPECS gazette notification and covers PCBs, passive components, sensors, display panels, and more. 03 Check PLI scheme applicability for your product category — PLI for IT Hardware (laptops, tablets, servers) and other electronics categories provides production-linked incentives calculated on incremental sales above a base year. PLI applications open periodically; check the MeitY website for active application windows. 04 Understand the BIS compulsory registration overlap — MeitY notifies which products require BIS CRS certification under the Electronics and IT Goods Quality Control Order. This is a mandatory market access gate that runs parallel to all incentive schemes. No MeitY incentive waives BIS certification requirements. 05 Engage with ELCINA or IESA industry bodies for policy consultation and scheme application assistance. Both bodies maintain direct engagement with MeitY policy teams and run member workshops on new scheme notifications, amendments to PMA lists, and PLI application timelines. ## Frequently asked questions ### What is Preferential Market Access and who does it affect? Preferential Market Access (PMA) is a government procurement policy that gives preference to electronics products with sufficient domestic value addition when purchased by Indian government bodies, including central ministries, state government departments, and public sector undertakings. Companies selling specified electronics products into government channels — through tenders, rate contracts, or direct procurement — must demonstrate the required DVA percentage. Foreign companies without Indian manufacturing that do not meet PMA thresholds cannot win government contracts for PMA-notified products. ### Does SPECS apply to companies manufacturing in India only? Yes, SPECS is exclusively for companies establishing or expanding manufacturing of specified electronic components in India. Importers of finished goods or components do not qualify. The incentive reimburses 25% of eligible capital expenditure on plant, machinery, equipment, and associated civil works, disbursed over five years against verified investment claims. Foreign companies can benefit by establishing Indian manufacturing subsidiaries and applying through those entities. ### How does MeitY policy interact with BIS certification requirements? MeitY is the ministry responsible for both the incentive schemes (PLI, SPECS) and for notifying which products require mandatory BIS CRS certification under the Electronics and IT Goods Quality Control Order. These two functions are distinct but overlapping — a product can simultaneously be PLI-eligible (rewarding its manufacture) and BIS CRS mandatory (requiring certification before it can be sold). Companies must meet BIS requirements regardless of whether they receive PLI or SPECS benefits; the incentive programmes do not create any certification exemption. ### Is the PLI scheme for electronics still open for new applications? PLI scheme eligibility windows open and close by product category. As of 2025, some PLI categories (mobile phones, IT hardware) have closed initial application rounds, but MeitY has opened additional rounds for IT hardware to fill unfulfilled targets. New product categories are occasionally added. Companies should monitor the MeitY website and official gazette for new PLI notifications, and engage industry bodies like IESA for advance notice of upcoming application windows. **Disclaimer:** Educational resource only. Regulatory requirements change and vary by product category. 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