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The PLI scheme for manufacturing electronics components will have an allocation of INR 23,000 Cr for a total period of six years
With India having established itself as a prominent manufacturing hub for smartphones, the new scheme is aimed at increasing the local value addition
The scheme will target components such as display modules, sub assembly camera modules, PCB assemblies, lithium cell enclosures, resistors, capacitors, among others
The IT ministry has reportedly finalised a production linked incentive scheme (PLI) for manufacturing electronics components.
The PLI scheme will have an allocation of INR 23,000 Cr for a total period of six years, Indian Express reported.
With India having established itself as a prominent manufacturing hub for smartphones, the new scheme is aimed at increasing the local value addition.
The new scheme will target electronics components such as display modules, sub assembly camera modules, printed circuit board assemblies, lithium cell enclosures, resistors, capacitors and ferrites, among others.
“Overall, the government is targeting that the scheme will help generate 91,600 direct jobs over the six-year period, with an annual incentive payouts ranging from INR 2,300 Cr to INR 4,200 Cr, conditional on companies meeting investment, production and employment goals for the corresponding year. So, we have finalised the scheme with an outlay of INR 22,919 Cr,” a government official was quoted as saying.
The official added that with the PLI scheme for smartphones nearing their end, the new scheme will help enhance domestic value addition in phone manufacturing to 30% to 40% from 15% to 20% currently.
The report said that the scheme will offer three types of incentives – depending on operational expenses, capital expenses, and a combination of the two.
This comes months after a report in August last year said that the government was considering allocating up to INR 40,000 Cr for the proposed electronics component manufacturing scheme.
The proposed launch of the new scheme is in line with the Centre’s budget announcement. While presenting the Union Budget 2025-26 last month, finance minister Nirmala Sitharaman said that the government will provide support to integrate domestic manufacturing capacity with global supply chains in the electronics equipment industry to capitalise on Industry 4.0 opportunities.
