India Approves INR 22,919 Crore PLI Scheme to Boost Electronics Manufacturing, Eyes INR 4.56 Lakh Crore Production The Electronic Industries Association of India (Elcina) noted that India's non-semiconductor component production stood at $13 billion in 2022 and is projected to grow to $20.7 billion by 2026, reaching approximately $37 billion by 2030
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The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to a major Production Linked Incentive (PLI) scheme aimed at bolstering India's electronics component manufacturing industry. With an outlay of INR 22,919 crore, the initiative is expected to significantly reduce import dependence and position India as a key player in the global electronics supply chain, Union Electronics and IT Minister Ashwini Vaishnaw announced at a press conference in New Delhi on Friday.
For the first time, passive electronic components have been included under a dedicated PLI scheme, marking a strategic shift in India's approach to electronics manufacturing. "Passive components are approved under the Electronics Component PLI scheme. It has a total package of INR 22,919 crore. This will be for over six years," Vaishnaw said.
The scheme is projected to draw an investment of INR 59,350 crore, generate production worth INR 4,56,500 crore, and create direct employment opportunities for 91,600 people, with additional indirect job opportunities expected. The initiative aligns with the government's vision of strengthening domestic manufacturing capabilities while integrating Indian companies into global value chains.
"This scheme aims to develop a robust component ecosystem by attracting large investments—both global and domestic—into the electronics component manufacturing sector," the minister stated. He emphasized that the program will increase domestic value addition, helping Indian firms scale up and become competitive in the global market.
The PLI scheme will support the production of sub-assemblies, bare components, and the supply chain ecosystem, including capital equipment for electronics manufacturing. Sectors set to benefit include telecom, consumer electronics, automobiles, medical devices, and power, among others.
Industry experts have long advocated for a dedicated incentive program for non-semiconductor components. The Electronic Industries Association of India (Elcina) noted that India's non-semiconductor component production stood at $13 billion in 2022 and is projected to grow to $20.7 billion by 2026, reaching approximately $37 billion by 2030. The industry body has been pushing for a targeted PLI scheme since the launch of the semiconductor initiative in December 2021.
Vaishnaw highlighted the need for India to move beyond import substitution and become a manufacturing hub for the world. "We need to come out of the import substitution mindset and start manufacturing for us and for the rest of the world," he said.
To ensure accountability and maximize job creation, the scheme ties a portion of the incentive payout to employment targets. The government believes this will encourage companies to focus on skill development and workforce expansion, further strengthening India's position in the global electronics market.
