In a significant step towards enhancing domestic electronics production, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹22,919 crore Production-Linked Incentive (PLI) scheme. This initiative is designed to reduce India’s dependence on imported electronic components while expanding domestic manufacturing capabilities.

The PLI scheme is expected to bolster India’s supply chain in critical electronic components, covering Printed Circuit Boards (PCBs), multilayer PCBs, resistors, capacitors, fuses, transformers, and diodes. By incentivizing domestic production, the government aims to reduce imports, increase exports, and integrate Indian manufacturers into global value chains.

According to Union Minister Ashwini Vaishnaw, India's electronics industry has already generated 25 lakh jobs. The new scheme will further enhance this by creating over 91,600 direct jobs while attracting large-scale investments into India’s electronics ecosystem.

What’s Covered Under the PLI Scheme?

The new PLI scheme covers a broad range of electronic components crucial for manufacturing smartphones, IT hardware, and telecom equipment. Some of the key components include:

✅ Printed Circuit Boards (PCBs)
✅ Passive components (capacitors, resistors, diodes, inductors)
✅ Display and camera modules
✅ Battery management systems and Li-ion cells (excluding EV and storage applications)
✅ Connectors, switches, relays, and sensors

By targeting these specific components, the government aims to develop a strong electronics manufacturing ecosystem in India, reducing the industry’s reliance on foreign imports.

Economic Benefits of the Scheme

The ₹22,919 crore PLI scheme is expected to bring significant economic and employment benefits to India:

🔹 Total Electronics Production: ₹4.56 lakh crore
🔹 Investment Attraction: ₹59,350 crore
🔹 Direct Jobs Created: 91,600
🔹 Growth in Domestic Value Addition: Strengthening India's electronics supply chain

The government has also linked a portion of the incentives to employment generation, ensuring that companies benefit only if they create a significant number of jobs.

Previous PLI Schemes’ Success in India

This new PLI scheme builds on the success of previous PLI programs in the mobile manufacturing sector.

📈 Increase in Mobile Phone Production: From 60 million units in 2014-15 to 330 million units in 2023-24.
📈 Growth in Mobile Phone Exports: From ₹22,868 crore in 2020-21 to ₹1,29,074 crore in 2023-24.

This proves that India’s PLI model has successfully driven growth in the electronics sector, and the new scheme is expected to achieve similar results for electronic components.

India’s Vision for Electronics Manufacturing

With this scheme, India aims to:

✔ Reduce import dependence on electronic components
✔ Increase domestic manufacturing and exports
✔ Strengthen the supply chain for the electronics industry
✔ Create more jobs in the sector

The approval of this scheme aligns with India's broader goal of becoming a global hub for electronics manufacturing and contributing significantly to the global electronics supply chain.

Final Thoughts

The ₹22,919 crore PLI scheme is a game-changer for India's electronics industry. It will help India reduce imports, increase domestic production, create jobs, and attract investments. By focusing on critical electronic components, India is taking a major step toward self-reliance in electronics manufacturing.

As the scheme unfolds, industry players and investors will be closely watching how it transforms India’s electronics ecosystem in the coming years.

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