According to the Union Electronics and IT Minister, the government is holding consultations with mobile phone makers, IT firms and electronics manufacturers on the next version of the production-linked incentive (PLI) scheme ahead of Cabinet approval.
He said recent Budget reforms, including the Rs 400 billion electronics component manufacturing scheme and tax holidays for artificial intelligence (AI) data centres, are expected to significantly boost employment across the electronics, AI and global capability centre (GCC) segments, taking job creation well beyond the current level of over 10 million.
Responding to queries on the mobile PLI scheme, which is set to conclude in March and was not specifically addressed in the 2026-27 Budget, the minister said the government remains in continuous discussions with manufacturers to shape the next phase.
He added that the Union Budget 2026–27 lays out a roadmap aligned with the vision of “Viksit Bharat 2047”, focused on building a resilient, self-reliant economy and driving employment-led growth across sectors. He said 46 units have already been approved under the electronics component manufacturing scheme, with many more proposals in the pipeline.
The minister noted that applications under the scheme have reached nearly 260, far exceeding initial expectations.
He also highlighted measures such as the five-year income tax exemption for foreign suppliers of capital equipment in bonded zones, calling them major reforms that will significantly strengthen India’s electronics manufacturing ecosystem.
Further, the minister said electronics manufacturing has expanded six-fold over the past decade, while electronics exports have grown eight times, making electronics the country’s third-largest export category.
On semiconductors, he said India has entered a new phase focused on strategic and foundational priorities, marking the realisation of a long-standing national ambition. He added that the next chapter will centre on building a self-reliant semiconductor ecosystem, with emphasis on manufacturing equipment, materials and chip design capabilities.
