INR 22,919 Cr PLI Scheme For Electronics Components

SUMMARY

The union cabinet today approved the Electronics Component Manufacturing Scheme with an outlay of INR 22,919 Cr to boost the country’s self-reliance in the electronics supply chain

The scheme aims to attract an investment of INR 59,350 Cr, resulting in production of INR 4,56,500 Cr, and generating additional direct employment of 91,600 persons and many indirect jobs as well

The tenure of the scheme is six years with one year of gestation period

In an effort to boost India’s self-reliance in the electronics supply chain, the union cabinet today approved the much awaited production-linked incentive (PLI) scheme for non-semiconductor electronics components with an outlay of INR 22,919 Cr.

The scheme aims to attract an investment of INR 59,350 Cr, resulting in production of INR 4,56,500 Cr, and generating additional direct employment of 91,600 persons and many indirect jobs as well.

The tenure of the scheme is six years with one year of gestation period. Payout of a part of the incentive is also linked with employment targets achievement.

“This scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs),” the government said in a statement.

“The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale,” the statement added.

The components manufactured will serve sectors, including telecom, consumer electronics, automobile and medical devices, among others.

The incentive will be divided into three categories — Turnover-linked incentive, hybrid incentive and capex incentive. The segregation on the basis of components are as follows –

Sub-assemblies – These are individual components or groups of components brought together to make a larger assembly or finished product. Manufacturers making components under this category including display module sub-assembly and camera module sub-assembly will be given turnover-linked incentive.

Bare Components – Manufacturers building components including multi-layer Printed Circuit Board (PCB), Li-ion cells, enclosures for mobile and IT hardware products will be incentivised on Turnover basis as well.

Selected Bare Components – There are some exceptional bare components such as SMD passive components and High-density interconnect (HDI). Makers of these components will be given Hybrid incentive.
Capital Equipment For Electronics Manufacturing – The machinery or capital goods used in the manufacturing of electronics components will be provided capex incentives.

India’s Electronics Manufacturing Push

The Centre is aggressively working towards making India a manufacturing hub and reducing dependency on the global powers.

As per the Economic Survey 2024-25, India produced electronics goods worth INR 9.52 Lakh Cr in FY24, against INR 1.90 Lakh Cr in FY15.

The country has also seen reduction in dependence on smartphone import with 99% of them being manufactured domestically.

Along with incentives from the government, tech giants, including Dixon, Vivo and Jabil are also investing in India’s growing electronics manufacturing landscape. In December last year, homegrown electronics manufacturer Dixon Technologies signed an agreement with Vivo India to launch an original equipment manufacturer (OEM) facility to boost smartphone manufacturing in India.

Earlier this month, IPO-bound Zetwerk rolled out its seventh manufacturing facility in Chennai to produce electronics components including control boards for washing machines, refrigerators, air conditioners, and IT hardware.

Meanwhile, Apple supplier Jabil is planning to build an electronics manufacturing facility in Tamil Nadu’s Trichy by infusing INR 2,000 Cr.

The recent developments comes after finance minister Nirmala Sitharaman, during her budget speech for 2025-26, said that the government is looking to give a much-needed spur to the domestic electronics equipment industry.