In a significant boost to India’s electronics manufacturing industry, the government’s Production-Linked Incentive (PLI) scheme has attracted impressive investments of Rs 6,887 crore by June 2023, surpassing the initial target for the fiscal year 2023-2024, which was set at Rs 5,488 crore.
The PLI scheme, launched in April 2020 for a five-year period, offers incentives of 3-6 percent on incremental sales for eligible companies engaged in large-scale electronics manufacturing, particularly in segments like mobile phones and specified electronic components.
Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, highlighted the scheme’s success during a session in the Rajya Sabha. He stated that the PLI scheme is expected to have a far-reaching impact, contributing to investments totaling Rs 7,000 crore, production worth Rs 8,12,550 crore, exports amounting to Rs 4,87,530 crore, and the creation of around 200,000 direct jobs within the scheme’s duration.
Notable achievements of the PLI scheme till June 2023 include generating a remarkable production value of Rs 3,30,612 crore and exports worth Rs 1,56,051 crore. Additionally, the scheme has led to the creation of 62,173 direct jobs, marking a substantial cumulative impact on employment in the electronics manufacturing sector.
Minister Rajeev Chandrasekhar emphasized that the government’s overarching objective is to strengthen and diversify India’s electronics manufacturing ecosystem, with a focus on increasing the country’s participation in the global electronics value chains (GVCs).
A total of 32 applicants have received approval under the PLI scheme to date. The scheme’s success and popularity underscore the growing interest and confidence among companies in India’s electronics manufacturing potential.
Furthermore, as part of the government’s ongoing efforts to enhance the quality of electronic products manufactured or imported into the country, the Ministry of Information Technology issued a notification in 2021 mandating strict compliance with Indian standards for the manufacture, storage, import, sale, and distribution of specified electronic goods and articles. This notification covers 64 electronic goods or articles that must adhere to the corresponding Indian quality standards.
India’s electronics manufacturing sector’s rapid progress, bolstered by the PLI scheme and quality-focused regulations, is positioning the country as a key player in the global electronics landscape. The sustained growth in investments, production, exports, and employment highlights India’s potential to emerge as a significant hub for electronics manufacturing on the international stage.