Govt Approves PLI Scheme for Electronics Components: Industry Applauds

Recently, the Union Cabinet approved the electronics component manufacturing scheme with an allocation of more than Rs.22,000 crore. This announcement has made positive waves around the industry. As it will strengthen the Make In India initiative and lead to being self-sufficient when it comes to electronics component manufacturing.

Associations like IESA, FAIITA and big names like HCL have welcomed this announcement and expressed their positive outlook for the future of electronic components manufacturing in India. This PLI scheme will attract investments from the manufacturers. Moreover, India will rise as an electronics product nation.

Asociation Representatives Welcome the Union Cabinet Approval for PLI Scheme

"IESA welcomes the government’s approval of the Rs.22919-crore Production Linked Incentive (PLI) scheme for electronic components and Subassemblies manufacturing, a long-standing industry demand. A clear indication of the Government's commitment towards growth of the ESDM sector for multiple applications. As per the IESA report, India’s electronics market of domestic manufacturing and exports is expected to grow to USD 400 billion by the year 2030. One of the key challenges in this growth has been low-value addition. India continued to import PCBs, Passive components ( Such as Capacitors, Inductors, resistors, etc.), Display Modules etc., that constituted 15-20% of the Bill of materials of the electronic products in addition to Semiconductors. The Component PLI will accelerate the Make in India initiative, driving higher value addition and strengthening the domestic supply chain with import reductions. Alongside the semiconductor manufacturing ramp-up and the existing PLI for electronics manufacturing, these initiatives will enhance India's global competitiveness. With these strategic efforts, India is poised to meet domestic demand and expand exports, cementing its position as a global powerhouse in electronics and semiconductors."

-- Ashok Chandak, President, IESA

"The much-awaited Electronics Components Manufacturing scheme was announced today by the Hon. Minister Ashwini Vaishnav. From EPIC, we have been requesting for this for a long time. This will enable much higher value addition in the country for electronics manufacturing and will attract more investments in system products as local availability will enable just-in-time manufacturing. It will also enable more companies and startups to design and make products to enable India to be an Electronics Product Nation. Moreover, this scheme has an attractive employment-linked incentive scheme in addition to PLI and Capex benefits, which will further promote employment growth, workforce competitiveness and economic development. We also eagerly await the design in India scheme for chips and systems that will complete the full ecosystem."

--  Dr Ajai Chowdhry, Founder, HCL, Chairman, EPIC Foundation

"PLI on components for over Rs.22000 Cr is going to be a game changer in the Electronic Industry in India. This will enable the Indian Industry to achieve the Make In India in real terms. At present, reaching the 50 percent target in Make In India was a challenge as Indian make components were not available. Now, with this incentive, things will start moving. Even though the amount of Rs 22000 Cr is less than required but it will set the ball rolling. Govt should see that this entire PLI should go to the MSME sector and in return, they can create an ancillary network as a feeder for large companies."

-- Devesh Rastogi, President, FAIITA

Conclusion

The approval of the electronics component manufacturing scheme is a step toward supporting India's electronics ecosystem. Addressing the industry's demands and incentivizing local production will improve domestic value addition, reduce import dependency, and attract investments in the sector.

With industry experts and associations such as IESA, FAIITA, and EPIC Foundation supporting this announcement, the scheme will accelerate India's progress. Additionally, its employment-linked benefits will contribute to workforce development and economic growth.

As India continues to expand its semiconductor and electronics manufacturing capabilities, it lays the foundation for a self-reliant and competitive industry, reinforcing the country’s position in the global supply chain.

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