After much anticipation, the finance ministry sanctions a ₹250 billion incentive scheme to boost local production of electronic components, to be introduced in Budget 2025.
The union finance ministry has authorised an incentive scheme worth nearly $3 billion (approximately ₹250 billion) for electronic components. It is set to be introduced in the upcoming Union Budget 2025 and is expected to receive Cabinet clearance shortly.
Aimed at bolstering domestic manufacturing, the scheme targets key electronic components such as printed circuit boards (PCBs), batteries, displays, and camera modules.
According to a report by moneycontrol, the production-linked incentive (PLI) scheme is designed to reduce India’s dependency on imports, particularly from China, and stimulate local value addition.
It is expected to incentivise electronics companies to enhance production and develop local supply chains. The push is in line with India’s ambition to become a significant player in the global electronics and components market.
India’s electronics production has surged dramatically in recent years, more than doubling to $115 billion in 2024, primarily driven by mobile manufacturing giants like Apple and Samsung.
Industry stakeholders had advocated for a larger scheme, with proposals suggesting an outlay of up to ₹400 billion, but the ₹250 billion provision is seen as a substantial step towards further expansion.
The new scheme is anticipated to attract both domestic and global investments, fostering job creation within India’s manufacturing and allied sectors. It will also help address supply chain vulnerabilities and encourage innovation in the local electronics industry.
With the country now ranking as the world’s fourth-largest smartphone supplier, the scheme could further enhance India’s role in the global electronics supply chain.
