MeitY note on electronic parts PLI ready, likely to be sent to cabinet this week: Report

Electronics (Representative)

The ministry of electronics and information technology (MeitY) has readied a proposal for a Rs 25,000-crore production linked incentive (PLI) scheme for electronics components and will send it for cabinet approval this week, CNBC-TV18 has reported.

The proposal is aimed at enhancing the domestic manufacturing of electronics parts.

The ministry is focusing on batteries, displays camera modules and printed circuit boards (PCBs), aligning with the government's push to reduce imports and boost India's electronics supply chain, it said.

Moneycontrol couldn't verify the report independently.

The size of the scheme is lower than the Rs 40,000-crore allocation proposed by industry stakeholders, the report said. The new PLI scheme will likely attract investments worth Rs 40,000 crore to Rs 45,000 crore.

India's electronic production has more than doubled in the past six years to $115 billion in 2024, led by mobile manufacturing by companies such as 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 second-largest smartphone supplier.

The scheme may also help increase production capacities and integrate Indian manufacturers with a growing ecosystem of domestic component suppliers and manufacturers, experts have said.