CHENNAI: The Centre has cleared 22 projects under the production-linked incentive scheme for electronics components, paving the way for investments of about Rs 41,863 crore and giving a fresh push to India’s electronics manufacturing ecosystem. The approvals mark a key step in the government’s efforts to deepen the domestic value chain and reduce reliance on imported components.
The selected projects span a wide range of electronic components, including printed circuit boards, passive components, display modules, camera modules and other critical parts used in consumer electronics, industrial equipment and automotive applications. Officials said the scheme is designed to encourage large-scale manufacturing, attract global players and support the development of domestic champions in components, which account for a significant share of India’s electronics import bill.
With the expected investments, the projects are also projected to generate substantial employment, both directly in manufacturing units and indirectly across ancillary industries such as logistics, tooling and materials. The Ministry of Electronics and Information Technology (MeitY), which cleared these projects, expects the scheme to catalyse the creation of a robust supplier base that can serve not only domestic demand but also global markets over time.
The electronics components PLI scheme complements earlier incentive programmes focused on finished goods such as mobile phones and IT hardware. While India has made rapid gains in assembling end products, policymakers have acknowledged that value addition remains limited unless component manufacturing scales up. The latest approvals are aimed at addressing this gap by encouraging firms to localise production of high-value and technologically complex components.
Industry participants, as they were quoted in reports, have welcomed the move, noting that policy certainty and financial incentives are crucial at a time when global electronics supply chains are being reconfigured. The approved projects are expected to be rolled out in phases, with investments and output ramping up over the next few years as companies set up or expand manufacturing facilities.
The Centre has reiterated that strengthening electronics manufacturing is a strategic priority, given the sector’s potential to drive exports, innovation and jobs. With the clearance of these 22 projects, the government is signalling its intent to accelerate India’s transition from an assembly-led electronics hub to a more integrated manufacturing base.