Upcoming Budget: India Proposes ₹25,000 Crore PLI Scheme For Electronics Components

India is gearing up to strengthen its electronics manufacturing sector with a Production Linked Incentive (PLI) scheme worth ₹25,000 crore, aimed at boosting domestic production of key electronic components. According to a CNBC-TV18 report, the Finance Ministry has already approved the proposal, and the Ministry of Electronics and Information Technology (MeitY) is set to seek Cabinet approval ahead of its announcement in the Union Budget 2025.

Focus on Reducing Import Dependence 

The proposed scheme targets sub-assemblies of printed circuit boards (PCBs), batteries, display units, and camera modules. These components are crucial for the electronics industry, and the initiative aims to reduce India’s reliance on imports, particularly from China. By promoting local manufacturing, the scheme is expected to deepen domestic supply chains and improve value addition within the country.

Incentivising Key Components Manufacturing 

Industry insiders have suggested that the new incentives could attract significant investment, both domestic and foreign, into India’s electronics ecosystem. The focus on PCB manufacturing, in particular, could serve as a cornerstone for developing a robust supply chain, which is vital for assembling mobile phones, televisions, and other electronic devices.

India’s Rapid Growth in Electronics Production 

India’s electronics production has witnessed remarkable growth, more than doubling in the last six years to $115 billion in 2024. Mobile manufacturing, driven by global giants like Apple and Samsung, has played a significant role in this surge. With the new PLI scheme, India aims to scale up production capacities and integrate its manufacturers more effectively into the global electronics supply chain.

Positioning India as a Global Electronics Hub 

The proposed PLI scheme aligns with the government’s vision of positioning India as a major player in the global electronics and component supply chain. By incentivising local production, the initiative seeks to mitigate supply chain risks, attract new investments, and create jobs across manufacturing and allied sectors.

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