India’s electronics manufacturing sector is poised for a major push as the government plans to roll out the first approvals under the ₹22,919-crore Production-Linked Incentive (PLI) scheme for electronic components by August-September.
India is moving swiftly to operationalize its ambitious ₹22,919-crore Production-Linked Incentive (PLI) scheme for electronic components, with the first wave of approvals expected by August or September. Designed to boost local manufacturing of passive and non-semiconductor components, the scheme has already garnered nearly 100 applications from both industry veterans and new entrants, covering products like display modules, camera units, and battery packs.
A senior government official confirmed that a project management agency will be appointed within the next month to evaluate the proposals. Once in place, approvals will follow in rapid succession as the government adopts a fast-track approach to stimulate domestic value addition in electronics.Industry leaders have welcomed the scheme with enthusiasm. “The response from industry has been buoyant,” said Atul Lall, MD of Dixon Technologies, adding that Dixon will participate as the initiative aligns with its long-term strategy. “The deadline for applications is end of July, and we’re preparing our documentation.”
Major players such as Tata Electronics, Foxconn, and Zetwerk are also eyeing participation. Foxconn’s Yuzhan Technology is reportedly applying in the display module segment, while Zetwerk plans to invest ₹500–800 crore in manufacturing printed circuit boards (PCBs), enclosures, and electromechanical parts like heatsinks and sensors. Zetwerk is also engaging with technology partners in Taiwan, South Korea, and China, with plans to set up plants within a year.
According to Josh Foulger, president of Zetwerk Electronics, while the full ecosystem may take 18–24 months to materialize, the initiative is moving in the right direction. “It takes time to build the component ecosystem—skills, materials, and processes must align,” he said.
Analyst Neil Shah from Counterpoint Research highlighted components such as displays, batteries, and camera modules as key areas where India could make rapid gains. The PLI aims to attract ₹59,350 crore in investments, generate production worth ₹4.56 lakh crore, and create over 91,600 direct jobs. The initiative complements India’s existing PLI for mobile devices and the India Semiconductor Mission, marking a significant step in building a comprehensive electronics manufacturing ecosystem.
