Government Expands PLI Incentives to Strengthen Electronics Sector
The Union Cabinet has approved a ₹25,000-crore Production-Linked Incentive (PLI) scheme aimed at boosting India’s electronic component manufacturing sector. This initiative is designed to reduce reliance on imports, strengthen domestic supply chains, and attract both domestic and global investments in critical electronic components.
The newly approved PLI scheme targets essential components such as:
Batteries
Displays
Camera modules
Printed Circuit Boards (PCBs)
This strategic move aligns with India’s Make in India and Atmanirbhar Bharat programs, aimed at transforming India into a global electronics manufacturing hub.
India’s Electronics Industry Witnesses Rapid Growth
India’s electronics production has doubled over the past six years, reaching $115 billion in 2024. This growth has been largely driven by the expansion of mobile manufacturing by companies such as Apple and Samsung.
Factors contributing to this growth include:
Surging domestic demand for smartphones, laptops, and consumer electronics.
Government-backed incentives such as tax breaks and subsidies.
Rising foreign direct investment (FDI) in the electronics manufacturing sector.
With the PLI incentives expected to attract fresh investments, India aims to become a global hub for high-value electronic components.
Strategic Shift: India Opens Door to China-Linked Joint Ventures
India has traditionally been cautious about Chinese investments in sensitive sectors due to security concerns. However, the government is now considering a more balanced approach by allowing joint ventures (JVs) with Chinese firms under stringent scrutiny.
Key aspects of this policy shift include:
An interministerial committee, chaired by the Home Ministry, will evaluate each proposal on a case-by-case basis.
Strict security checks and operational oversight will be implemented to safeguard national interests.
Electronics Manufacturing Services (EMS) companies in India are actively seeking partnerships with global players, including Chinese firms, to secure technology transfers and enhance local production.
This calibrated approach allows Indian manufacturers to tap into global supply chains while maintaining strategic control over critical sectors.
Indian Companies Strengthen Global Partnerships in Component Manufacturing
Indian electronics firms are moving swiftly to forge international collaborations, particularly in component manufacturing.
Dixon Technologies Partners with China’s HKC for Display Modules
Dixon Technologies, one of India’s largest electronics manufacturers, has formed a joint venture with China’s HKC, a leading display maker.
The partnership aims to start production of display modules by July-September 2025.
Dixon is also in talks with international players for potential collaborations in camera modules, battery packs, and mechanical precision components.
The joint venture is expected to significantly boost India’s domestic production capacity in high-value electronics components.
Zetwerk Expands Electronics Component Business
Zetwerk, a $2-billion manufacturing firm, is actively pursuing joint ventures and technology transfers with global component manufacturers, including Chinese firms.
The company is also exploring acquisitions to enhance its presence in the electronics components space.
Zetwerk’s strategy focuses on precision manufacturing and deepening supply chain integration, ensuring India’s electronics sector remains competitive on a global scale.
Impact of the PLI Scheme on Job Creation and Investment Inflows
The PLI scheme is expected to generate thousands of jobs across the electronics manufacturing sector, benefiting:
Skilled and semi-skilled workers in component production.
Engineering and R&D professionals engaged in product innovation.
Supply chain operators and logistics experts managing the flow of raw materials and finished goods.
Additionally, the scheme is projected to attract substantial foreign and domestic investments, positioning India as a preferred destination for high-tech manufacturing.
Strengthening India’s Position in the Global Supply Chain
With government support, strategic international partnerships, and strong domestic demand, India is poised to become a leading global electronics manufacturing hub. The PLI scheme’s approval marks a significant step forward in reducing import dependency and enhancing local value addition, helping India compete more effectively in the international market.
