According to information submitted by the union minister for Electronics and Information Technology to Rajya Sabha, in 2020, government launched product-linked incentive (PLI) scheme for large scale electronics manufacturing. The target segment included mobile phones and certain specified components. The scheme has attracted investment of Rs 140.65 billion.
To target manufacturing of IT hardware, government launched PLI for IT hardware for promoting manufacturing of laptop, tablets, server and ultra-small form factor (USFF) devices. PLI for IT hardware have attracted investment of Rs 8.46 billion till date. Additionally, government has brought in multiple reforms in taxation, customs duty, foreign direct investment (FDI), etc. to facilitate electronics manufacturing.
As a result of these policy efforts, electronics manufacturing has grown almost six times in last 11 years. It has increased from Rs 1.9 trillion in 2014-15 to Rs 11.32 trillion in 2024-25. In last 11 years, total number of mobile manufacturing units have increased from 2 to more than 300. Since the launch of PLI for large scale electronics manufacturing (LSEM), mobile manufacturing has increased from 2.2 trillion in 2020-21 to 5.5 trillion.
Electronics exports has grown eight times from Rs 380 billion in 2014-15 to Rs 3.26 trillion in 2024-25. Electronics is now the third largest export category. Further, mobile exports have increased from about 220 billion to more than 2.2 trillion. Industry estimates that electronics sector now provides employment to approximately 2.5 million people.
To further deepen the value chain, government launched electronics components manufacturing scheme (ECMS) scheme in 2025. The scheme focuses on promoting domestic manufacturing of printed circuit board, electrical and mechanical components, camera modules, etc. Against the estimated investment proposals of Rs 593.5 billion, government has received investment proposals of Rs 1.15 trillion.
Furthermore, building on the success of electronics manufacturing, government of India launched program for development of semiconductors in 2022. Government is focused on developing the entire ecosystem of semiconductors which includes – designing, fabrication, assembly, testing and packaging. Government is also focused on developing skills and talent required for the semiconductor industry. In less than 3 years, 10 units have been approved with cumulative investment of 1.6 trillion. These units include silicon fab, silicon carbide fab, advanced packaging, memory packaging, etc. These would cater to chip requirements of sectors such as consumer appliances, industrial electronics, automobiles, telecommunications, aerospace, and power electronics etc.
In addition, to leverage India’s strength in chip design, government launched Design Linked Incentive (DLI) scheme. Support has been provided for 24 chips and SoCs for satellite communication, drones, surveillance camera, internet of things (IoT) devices, LEDs driver, artificial intelligence (AI) devices, telecom equipment, smart metre, etc.
