The association says India’s next growth phase must focus on components, semiconductors and design-led innovation to build a resilient electronics ecosystem.
IESA has welcomed the Union government’s newly approved Production Linked Incentive (PLI) 2.0, formally called the Mobile Phone Manufacturing Scheme (MPMS), saying the ₹62,500 crore programme will strengthen India’s electronics manufacturing ecosystem and support the country’s goal of becoming a US$400 billion electronics manufacturing economy by FY2030.
The industry body said the new scheme builds on the success of the first PLI programme, which transformed India’s mobile phone manufacturing sector. According to IESA, mobile phone production has increased nearly 28-fold since the scheme was introduced, while smartphone exports have grown more than eight times. India has also become the world’s second-largest mobile phone manufacturer. The scheme has attracted investments of over ₹17,500 crore, generated production worth more than ₹11 lakh crore and created over 1.75 lakh direct jobs.
Ashok Chandak, President of IESA and SEMI India, said the new MPMS comes at the right time to sustain the industry’s growth momentum. He said the scheme could help raise cumulative electronics production to around ₹39 lakh crore, boost exports to nearly ₹15 lakh crore and create an additional 60,000 direct jobs.
Chandak added that the focus should now shift towards increasing domestic value addition. He noted that localisation has improved from around 8–10% to nearly 20%, and said the combined implementation of MPMS, the Electronics Components Manufacturing Scheme (ECMS), the Semicon India Programme, the Electronics Manufacturing Clusters (EMC) Scheme and the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme could help increase domestic value addition to about 40% over the coming years.
IESA Chairperson Navin Bishnoi said these initiatives together create a comprehensive roadmap covering design, semiconductor manufacturing, component production and exports. He added that alongside expanding manufacturing capacity, India should focus on design, intellectual property, deep-tech startups and skilled talent to improve its position in the global electronics value chain.
IESA believes the renewed policy push will attract fresh investments, strengthen domestic supply chains, generate high-value employment and reinforce India’s position as a global hub for electronics manufacturing and innovation.
