The Finance Ministry has granted approval to a PLI scheme with an outlay of Rs 25,000 crore for electronic components, CNBC-TV18 reported citing people familiar with the development on January 6.
After the approval from the Finance Ministry, MeitY is expected to seek Cabinet approval, post which the scheme is likely to be announced in the upcoming Union Budget 2025. Industry had been seeking a greater outlay of up to Rs 40,000 crore for this scheme, it is learnt.
The PLI scheme is expected to include sub-assemblies of PCB, batteries and display, along with camera modules, and is aimed to enhancing domestic manufacturing as well as to reduce import dependence, particularly from China.
"The new scheme will incentivise production of key components like printed circuit boards that will improve domestic value addition and deepen local supply chains for a range of electronics," Reuters had quoted an official aware of the developments in November 2024, sharing details about the proposed incentives to local electronics companies to make components in India.
India's electronic production has more than doubled in the last six years to $115 billion in 2024, led by mobile manufacturing by companies like Apple and Samsung.
The PLI scheme could further attract domestic as well as global investment and create jobs in India's manufacturing and allied sectors. The push is aimed at positioning the country as a major player in the global electronics and component supply chain. Incentives for local production could help offset supply chain risks, as well as promote innovation within India.
The country is now the world's fourth-largest smart phone supplier.
The scheme may help increase production capacities, and integrate Indian manufacturers with a growing ecosystem of domestic component suppliers and manufacturers.
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