The Union Cabinet has approved a ₹22,919 crore Production-Linked Incentive (PLI) scheme for the production of passive or non-semiconductor electronics components. This initiative aims to enhance domestic manufacturing capabilities, reduce import dependency, and create substantial employment opportunities.
The scheme is expected to attract investments worth ₹59,350 crore and generate production valued at ₹4.56 lakh crore over six years. It will focus on promoting the manufacturing of passive electronic components, which are crucial for various sectors like telecom, consumer electronics, automobiles, and medical devices.
The initiative will create 91,600 direct jobs and numerous indirect employment opportunities, contributing significantly to India's employment landscape.
Industry leaders have welcomed the move, calling it a transformational push for India’s electronics sector. Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), highlighted its potential to catalyze deeper integration with global value chains and boost large-scale manufacturing.
The scheme will enhance India's competitiveness in the global electronics supply chain by increasing local value addition. This is crucial for sectors like consumer electronics and automotive, where domestic component availability is essential for efficient production.
The PLI scheme encourages strategic partnerships between Indian firms and global players, including Chinese companies, to integrate into global supply chains. For instance, Dixon Technologies has partnered with China’s HKC to manufacture display modules, with production set to begin by mid-2025. Such collaborations are expected to drive growth in the electronics manufacturing services (EMS) sector.
The approval of the ₹22,919 crore PLI scheme marks a significant step toward transforming India into a major electronics manufacturing hub. By fostering domestic production and reducing reliance on imports, this initiative aligns with India's broader vision of becoming a $500 billion electronics manufacturing and export powerhouse.