New Delhi: The Ministry of Electronics and Information Technology (MeitY) is preparing to send a Rs 25,000 crore Production-Linked Incentive (PLI) proposal to the Cabinet for approval, aiming to strengthen domestic electronics manufacturing, according to sources.
Focus on Key Components
The proposed scheme targets critical electronic components such as batteries, displays, camera modules, and printed circuit boards (PCBs). It seeks to reduce reliance on imports and enhance India’s electronics supply chain.
This move aligns with the government’s broader efforts to expand domestic production under its “Make in India” initiative.
Shift from Previous Policies
The new PLI scheme follows the discontinuation of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which ended in March 2024. Industry groups had initially pushed for a Rs 40,000 crore allocation to support a wider range of components, but the government has limited the initial outlay to Rs 25,000 crore.
However, officials have indicated that the scheme could expand depending on industry demand and response.
Investment and Industry Impact
Government estimates suggest the scheme could attract investments worth Rs 40,000-45,000 crore, fostering growth in India’s electronics sector. By incentivizing local production, the initiative aims to increase value addition in manufacturing and generate employment opportunities.
Industry experts believe this scheme will be crucial in addressing gaps in India’s electronics manufacturing ecosystem.
However, its effectiveness will depend on the structure of incentives and how quickly companies receive approvals. The government is expected to push for a swift rollout once the Cabinet clears the proposal.
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