The Indian government has announced its approval of ₹22,919 crore Electronics Component Manufacturing Scheme — marking a significant step toward strengthening the country’s domestic electronics industry.
This initiative is part of a strategy to reduce reliance on imported components, particularly from China, and to establish India as a global leader in electronics manufacturing. By offering production-linked incentives (PLI) to manufacturers of key components such as display modules, camera modules, multi-layer PCBs, lithium-ion cells, and high-density interconnect PCBs, the scheme aims to create a strong domestic ecosystem that supports consumer electronics, mobile phones, and IT hardware production.
The financial structure of the scheme is designed to encourage investment and job creation. With an expected total investment of ₹59,350 crore and an estimated production output worth ₹4,56,500 crore, the scheme is poised to have a significant impact on India’s manufacturing sector.
The creation of 91,600 direct jobs, along with numerous indirect employment opportunities, is expected to drive economic growth and contribute to India’s goal of self-reliance. The incentive framework, which includes employment-linked payouts and category-based financial support, further ensures that investments in the sector translate into tangible benefits for the economy.
This initiative is aligned with the Indian government’s “Atmanirbhar Bharat” (Self-Reliant India) vision, which emphasizes reducing dependency on imports and strengthening domestic supply chains. By complementing existing PLI schemes for semiconductors, mobile manufacturing, and IT hardware, the new scheme is expected to enhance India’s position in the global electronics value chain.
The strategic focus on high-value components highlights the government’s intent to move beyond basic assembly and toward advanced manufacturing. By incentivizing local production of critical electronic components, India can gradually reduce its trade deficit in the sector and become a key player in the global supply chain. Additionally, the scheme’s emphasis on long-term support over six years ensures sustained industry growth and investor confidence.
