The Indian government is gearing up to announce a Production-Linked Incentive (PLI) scheme worth Rs 25,000 crore for electronic components in the upcoming Union Budget 2025. This scheme aims to boost domestic manufacturing and reduce reliance on imports, particularly from China.
The Finance Ministry has approved the scheme, which is expected to attract investments exceeding Rs 40,000 crore, fostering growth in key electronics components such as sub-assemblies of Printed Circuit Boards (PCBs), batteries, displays, and camera modules. The Ministry of Electronics and Information Technology (MeitY) is likely to seek Cabinet approval before the official announcement.
The PLI scheme is part of India's broader strategy to strengthen its electronics manufacturing ecosystem and align with the government's 'Make in India' vision. The initiative aims to enhance local value addition and deepen local supply chains for a range of electronics.
Industry experts believe that the scheme will significantly boost India's electronics production, which has more than doubled in the last six years to reach $115 billion in 2024. The scheme is expected to produce electronics components worth $50-60 billion over its tenure, contributing to the country's goal of becoming a major player in the global electronics and component supply chain.
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