25,000 crore PLI scheme for electronic components this Union Budget 2025
Union Budget 2025 – The Finance Ministry has approved a Production Linked Incentive (PLI) scheme with an outlay of Rs 25,000 crore for electronic components, as reported by CNBC-TV18 on January 6, according to sources familiar with the matter.
Following the Finance Ministry’s approval, the Ministry of Electronics and Information Technology (MeitY) is expected to seek Cabinet approval. Once approved, the scheme is likely to be announced in the upcoming Union Budget 2025. Industry stakeholders had requested a higher outlay of up to Rs 40,000 crore for the scheme.
The PLI scheme is anticipated to cover sub-assemblies of printed circuit boards (PCB), batteries, displays, camera modules, and other components. Its primary objectives are to boost domestic manufacturing and reduce reliance on imports, particularly from China.
The new scheme aims to incentivize the production of critical components like PCBs, which will enhance domestic value addition and strengthen local supply chains for various electronics products. An official familiar with the developments, quoted by Reuters in November 2024, shared details about the proposed incentives for local electronics companies to manufacture components in India.
India’s electronic production has more than doubled in the last six years, reaching $115 billion in 2024, driven by mobile manufacturing giants such as Apple and Samsung.
The PLI scheme is expected to attract both domestic and global investments, creating job opportunities in India’s manufacturing and related sectors. The objective is to establish India as a key player in the global electronics and component supply chain. Incentives for local production could mitigate supply chain risks and foster innovation within the country.
India is now the world’s fourth-largest smartphone supplier, and the scheme is poised to enhance production capacities, integrating Indian manufacturers with a growing ecosystem of domestic component suppliers and manufacturers.
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