India Launches $2.7 Billion PLI Scheme to Boost Electronics Manufacturing

New Delhi – March 31, 2025 – In a strategic push toward industrial self-reliance and global competitiveness, the Government of India has unveiled a $2.7 billion Production-Linked Incentive (PLI) scheme to invigorate the country’s electronics manufacturing sector. This ambitious initiative aims to attract large-scale investments, generate high-value employment, and reduce dependency on imports—especially in critical components and finished devices like mobile phones and consumer electronics.

Strengthening India’s Electronics Ecosystem

The new PLI scheme marks a major leap forward in India’s efforts to become a global electronics manufacturing hub. Backed by a government commitment to attract $7 billion in private and foreign investment over five years, the scheme seeks to develop a resilient and globally competitive electronics ecosystem.

Focus Areas of the Scheme

• Mobile Phones and Smartphones: Continuing the momentum that made India the second-largest mobile phone producer globally, the scheme offers substantial incentives to both domestic and foreign companies manufacturing handsets.
• Electronic Components: Targeting semiconductors, printed circuit boards (PCBs), sensors, batteries, and chipsets to strengthen the supply chain and reduce import dependence.
• Consumer Electronics and IT Hardware: Encouraging large-scale production of smart TVs, laptops, tablets, and other digital products.
• Design and Innovation Support: Boosting R&D through dedicated incentives for innovation-driven production.

This broad-based approach ensures that the scheme supports not just assembly operations but also value-added manufacturing and intellectual property development in India.

Job Creation: A Cornerstone of Economic Growth

One of the most notable outcomes of this scheme will be the creation of over 91,000 new jobs across various skill levels in the electronics sector within the next five years.

Employment Opportunities:

• Manufacturing and Assembly: Thousands of direct jobs will be created in production lines, particularly in states like Tamil Nadu, Uttar Pradesh, Karnataka, and Andhra Pradesh where electronics clusters are already growing.
• Design and Engineering Roles: The scheme will also support innovation, fostering high-tech jobs in product design, circuit development, and embedded software.
• Indirect Employment: Supporting industries such as logistics, warehousing, packaging, and retail will also benefit, generating additional indirect employment opportunities.

This job creation not only supports India’s growing workforce but also reinforces the government’s Make in India and Digital India initiatives.

Driving Foreign Investment and Supply Chain Diversification

With increasing global uncertainty and a growing demand for diversified manufacturing bases, India is positioning itself as a credible alternative to traditional supply chains cantered in East Asia, especially China.

Investment Potential:

• The government projects $7 billion in investment inflows over five years as global tech giants seek to take advantage of India’s large market, skilled labour, and improving infrastructure.
• Companies like Apple, Samsung, Foxconn, Xiaomi, and Lava are expected to either expand their existing production bases or establish new facilities in India.
• The scheme incentivizes both greenfield projects and capacity expansion, making it attractive for both new entrants and existing manufacturers.

These developments will increase India’s share in the global electronics export market, which remains dominated by China, Vietnam, and South Korea.

Reducing Import Dependency: Toward Strategic Autonomy

One of the key motivations behind this PLI scheme is to reduce India’s dependency on imports, particularly in high-value components like semiconductors, sensors, and display units.

Domestic Value Addition Goals:

• The scheme encourages manufacturers to source components locally, thereby developing the domestic supply chain and boosting ancillary industries.
• It supports the growth of component parks and special economic zones (SEZs) with built-in infrastructure for assembly, testing, and packaging (ATMP).
• Local production of chipsets and PCBs will reduce import bills and shield Indian manufacturers from global supply chain disruptions.

This transition to end-to-end manufacturing is critical to India’s ambition of becoming not just an assembly centre but a technology development hub.

Government Vision and Policy Alignment

The PLI scheme complements other national initiatives like:

• Make in India
• Digital India
• start-up India
• National Policy on Electronics (NPE) 2025

A senior government official commented:

“This $2.7 billion incentive program demonstrates our long-term vision to create a globally competitive electronics manufacturing ecosystem. It will bring investment, technology, and jobs to India, making us an indispensable part of the global value chain.”

The PLI scheme also supports India’s climate and energy goals by promoting local manufacturing of energy-efficient products and green electronics, helping industries shift toward sustainability.

Outlook: A Step Toward Technological Sovereignty

India’s electronics industry has already grown from a $70 billion market in 2014 to over $155 billion in 2024. With the implementation of this PLI scheme, the country is poised to:

• Achieve $300 billion in electronics manufacturing output by 2026
• Export more than $120 billion worth of electronics annually
• Develop a skilled workforce for future-ready technology sectors like IoT, 5G, AI, and automation

This move reinforces India’s commitment to achieving self-reliance (Atmanirbhar Bharat) while integrating into global supply chains as a trusted manufacturing and design destination.

Conclusion

The launch of the $2.7 billion production-linked incentive scheme marks a major milestone in India’s economic and industrial journey. It lays the foundation for a robust, self-sufficient, and innovation-driven electronics manufacturing sector, while opening new avenues for employment, investment, and global competitiveness.

As the world looks for reliable alternatives in electronics production, India is stepping up with a compelling offer: scale, talent, infrastructure, and now, smart policy incentives.

Disclaimer: This article is based on government data and official announcements available as of March 31, 2025. Readers are encouraged to consult financial experts or official portals for detailed guidance before making investment or business decisions.