PLI Scheme Drives Record Electronics Investments

India’s Production Linked Incentive (PLI) scheme for electronics is witnessing unprecedented traction, with proposals exceeding ₹1.15 lakh crore. The program spans mobile manufacturing, semiconductors, components, and consumer electronics, aiming to boost domestic value addition and integrate India into global supply chains.

So far, 28 leading global and domestic manufacturers have pledged expansions under the scheme, capitalizing on incentives and global shifts away from China.

Leading Investors and Expansion Plans

Top participants include Foxconn, Wistron, Dixon Technologies, Lava, and Samsung, all scaling up facilities or announcing new production lines. Foxconn, for instance, is ramping up output in India to meet both domestic and export demand.

The PLI program has also spurred ancillary industries, including logistics, packaging, and component suppliers, creating a significant multiplier effect across the ecosystem.

Employment and Economic Impact

The electronics PLI is projected to generate around 1.41 lakh direct jobs, with 4–5 lakh indirect jobs from ecosystem growth. Industry experts estimate that electronics exports could exceed $120 billion by FY2026, up from $28 billion in FY2022.

Key manufacturing hubs include Tamil Nadu, Karnataka, and Uttar Pradesh, emerging as centers for mobile phones and electronic components.

Global Competitiveness and Strategic Advantage

The expansion aligns with global supply chain realignment, as companies reduce reliance on China. India’s PLI combines 4–6% production incentives, tax benefits, and simplified industrial land acquisition.

Analysts believe that with consistent policy support and infrastructure upgrades, India could become a top electronics manufacturing hub within the next decade, competing with East Asian powerhouses.

Policy Continuity and Ongoing Challenges

Despite strong momentum, challenges remain:

• Dependence on imported components

• High logistics and production costs

• Delays in new approvals and land acquisition

The government is planning a second PLI phase targeting components and sub-assemblies to deepen the domestic supply base. Complementary semiconductor and chip fabrication initiatives are expected to create a complete electronics manufacturing ecosystem.

Market Takeaway

With investments surpassing ₹1 lakh crore, India is moving from a consumption-driven economy to a production-driven industrial powerhouse. As global and domestic manufacturers scale operations, the country is on track to become a major electronics hub, strengthening exports, trade balance, and domestic employment in technology sectors.