Industry Growth and Production:
As of 2024, India’s electronics production exceeded $115 billion, more than doubling from previous years. The country aims to expand this figure to $500 billion by 2030.
Electronics
ITA > Electronics
Government Initiatives:
➤ Production-Linked Incentive (PLI) Scheme: Launched in 2020, the PLI scheme offers 4-6% cash incentives on incremental sales across 14 sectors, including electronics. It has attracted over $17 billion in investments, resulting in approximately $131.6 billion in production value and generating nearly one million jobs over four years.
➤ Incentives for Component Manufacturing: In March 2025, the Indian government approved a $2.7 billion plan to boost electronic components manufacturing, aiming to create around 92,000 direct jobs and enhance domestic production in sectors like telecommunications, automobiles, and energy.
➤ Import Dependence: Efforts are ongoing to reduce reliance on imported components, particularly from China. The government plans to offer between $4-$5 billion in incentives to companies producing electronic components locally.
➤ Scheme Performance: While the PLI scheme has attracted significant investments, it has faced challenges in meeting production targets and timely subsidy disbursements. As a result, the government plans to let the $23 billion initiative lapse, considering alternative support methods.