Rs 22,919 Crore PLI Scheme For Non-Chip Electronics Announced, Aims To Boost Local Manufacturing And Exports

The Union Cabinet has given the green light to a Production-Linked Incentive (PLI) scheme focused on non-semiconductor electronics component manufacturing, Union Minister Ashwini Vaishnaw announced on Friday (28 March). 

The scheme comes with a financial outlay of Rs 22,919 crore and is aimed at strengthening country's position in the global electronics value chain.

Highlighting the rapid expansion of India’s electronics sector, the minister stated that production has grown fivefold in CAGR, while exports have increased sixfold. 

Electronics has now emerged as one of the top three export categories for goods from India.

“Electronics, textiles and garments generate huge amount of employment, hence to grow this further, a historic decision has been taken in the complete electronics manufacturing value chain." Vaishnaw said.

He added, "We’re making progress in the semiconductor part of the value chain, in the PLI for finished products. This time, we are covering sub-assemblies and bare components,”.

Under this scheme, capacitors, inductors, resistors, and connectors will now be manufactured within the country, reducing import dependency and enhancing value addition in India.

The newly approved scheme is expected to generate 91,600 direct jobs and drive Rs 4,56,000 crore worth of production in the electronics sector.

Launched in 2020, the PLI scheme for electronics manufacturing has already attracted Rs 10,213 crore in investments as of December 2024.

Under a special incentive scheme, the cumulative production has reached Rs 6,62,247 crore, contributing to an additional 137,189 direct jobs.

The impact of PLI on mobile phone manufacturing has been particularly notable. Production has surged from 60 million units in 2014-15 to 330 million units in 2023-24, marking a fivefold increase over the past decade, as reported by The Hindu Business Line.

Also Read: Netanyahu’s Judicial Overhaul Resurfaces As Israel's Legislature Passes Controversial Judge Appointment Law