India Electronics PLI Investments Cross One Lakh Crore

India’s push to become a global electronics manufacturing hub is gaining significant momentum. The Production Linked Incentive (PLI) scheme for electronics has now attracted investment proposals worth over ₹1.15 lakh crore, according to the Ministry of Electronics and IT. This ambitious program is set to generate more than 1.41 lakh direct jobs and several lakh indirect jobs across the country.

The Big Push

The PLI scheme has received strong participation from both global and domestic players in mobile manufacturing, electronic components, semiconductors, and consumer electronics. The government aims to increase domestic value addition while integrating India into global supply chains. So far, around 28 companies have committed to expanding operations, encouraged by the incentives and the global shift away from China.

Leading Investors

Key global players such as Foxconn, Pegatron, and Dixon Technologies are ramping up production under the scheme. Domestic companies including Lava and Samsung are also expanding facilities. Foxconn, for instance, is scaling up output to serve both domestic and export markets. This growth is encouraging ancillary industries like logistics, packaging, and raw material suppliers to establish local operations, creating a multiplier effect across the economy.

Job Creation and Economic Impact

The electronics PLI program is expected to create around 1.41 lakh direct jobs, with an additional 4 to 5 lakh indirect jobs as the ecosystem grows. Industry estimates suggest that by FY2026, India’s electronics exports could reach $120 billion, a significant increase from about $28 billion in FY2022. States such as Tamil Nadu, Karnataka, and Uttar Pradesh are emerging as key hubs for mobile phones and electronic components.

Global Competitiveness

The initiative comes at a time when global brands are seeking alternatives to Chinese manufacturing. India’s PLI scheme offers production incentives of 4–6%, along with tax benefits and simplified industrial approvals. Analysts believe that with consistent policy support and infrastructure upgrades, India could emerge as a major electronics manufacturing hub within the next decade.

Policy Continuity and Challenges

Despite strong progress, challenges remain, including reliance on imported components, high logistics costs, and delays in approvals. The government is planning a second phase of the PLI scheme focusing on components and sub-assemblies to strengthen the domestic supply chain. Semiconductor and chip fabrication initiatives under separate PLIs are also expected to complement the broader electronics manufacturing ecosystem.

Market Takeaway

Crossing the ₹1 lakh crore mark in electronics PLI investments is a defining moment for India’s industrial growth. With global and domestic players expanding capacity, India is transitioning from a consumption-driven economy to a production-driven one. If executed effectively, this initiative could position India as a global electronics powerhouse, rivaling East Asian manufacturing giants and boosting exports in technology goods.

Sources

Ministry of Electronics and Information Technology (MeitY)

ET Bureau

Business Standard

Invest India Reports (2025)