New Delhi, March 28 -- The Union cabinet on Friday approved a $2.7-billion ( Rs.22,919 crore) outlay to incentivize local manufacturing of electronics components in India, setting goals for domestic and foreign entities to establish local component manufacturing facilities at subsidies of up to 50% of the project costs.

Union information technology minister Ashwini Vaishnaw said at a briefing post the cabinet approval that the six-year incentive plan sought to attract investments of $7 billion ( Rs.59,350 crore), aimed at building products worth $53.5 billion ( Rs.4.6 trillion). He added that the plan will include employment targets for every incentive type, cumulating in 91,600 jobs being created during its six-year window.

The areas o...