Govt. Green Lights PLI Scheme For Electronics Manufacturing At OutLay Of ₹25,000 Crore

In a significant move to strengthen the electronics manufacturing ecosystem, the government on Friday approved a Rs 25,000 crore Production Linked Incentive (PLI) scheme focused on critical electronic components. The Centre's decision aims to reduce import dependency and give a boost to domestic manufacturing capabilities, says a report by MoneyControl.

Notably, the country's electronics manufacturing sector has witnessed remarkable growth, expanding from modest beginnings to reach $115 billion in production last year. This has been predominantly driven by handset manufacturers like Apple and Samsung, and both have established significant manufacturing presence in the country.

The PLI scheme targets strategic electronic components including display modules, camera sub-assemblies, printed circuit board assemblies, lithium cell enclosures, and fundamental electronic elements like resistors, capacitors, and ferrites.

The PLI scheme is expected to attract domestic and international investments, creating employment opportunities across manufacturing and other sectors.

Industry representatives initially advocated for a Rs 40,000 crore allocation, but the government has positioned the initial outlay at Rs 25,000 crore, the report added. 

Notably, sources quoted by the report suggest the government is open to facilitating joint ventures (JVs) with Chinese firms that are integrated into global supply chains. This approach could enable Indian electronics manufacturing services (EMS) companies to engage in high-level collaborations with established international players.