Major investments, soaring smartphone exports, and extended timelines drive rapid expansion in domestic electronics manufacturing.
Large-scale electronics manufacturers in India have received $2.3 billion in financial payouts under the government’s Production-Linked Incentive (PLI) scheme, while attracting $2.5 billion in total sector investment, according to official figures from the Department for Promotion of Industry and Internal Trade (DPIIT) cited by Press Trust of India.
Introduced in 2020, the flagship PLI initiative was launched with a total sanctioned budget of $23 billion spanning 14 strategic industrial sectors, including pharmaceuticals and technology hardware. Under this framework, qualifying businesses receive direct state subsidies calculated on incremental sales growth above a designated baseline year.
The sector-specific scheme for large-scale electronics manufacturing was crafted primarily to scale up domestic smartphone assembly and supply chain capabilities. A total of 32 manufacturers were selected to participate in the programme, which has successfully transformed smartphones into one of India’s primary export commodities. Reflecting this shift, annual smartphone exports rose sharply during this period, increasing to approximately $30 billion in 2025–26 from $5.5 billion in 2021–22. Originally scheduled for a five-year run from 2020–21 through to 2024–25, the scheme’s operating timeline has been lengthened by an additional year, extending its coverage through 2025–26.
