PLI scheme boosts electronics production to Rs 5.14 lakh crore

The production of mobile devices, including electronic parts and semiconductor packages, has achieved a significant milestone under the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing since June 2024. The government informed Parliament on Friday that the total production value has reached Rs 5.14 lakh crore, according to news agency PTI.

Apple supplier Foxconn and Samsung qualify for PLI incentives

The Production Linked Incentive program has attracted several major players in the mobile device manufacturing industry. Notable companies that have met the criteria to receive benefits under the program include key Apple suppliers such as Taiwan’s Foxconn and Wistron, as well as other industry giants such as Samsung and Pegatron.

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The aim of this initiative is to increase domestic production in the electronics sector, with particular emphasis on the production of mobile phones and related components.

“Till June 30, 2024, an additional investment of Rs 8,390 crores has been made under the PLI scheme. This has led to a production of Rs 5,14,960 crores by June 30, 2024,” Prasada was quoted as saying by PTI.

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Jitin Prasada, Minister of State (MoS) for Electronics and Information Technology, on Friday gave a written reply to the Rajya Sabha regarding the government’s initiatives in the electronics sector. He explained that the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing was formally announced on April 1, 2020. The policy aims to stimulate domestic manufacturing and attract investments in the mobile industry, including the supply chain of electronic components and semiconductor packaging. The scheme is part of the government’s broader strategy to boost India’s manufacturing capacity in the electronics sector.

Apart from this, Minister Prasada highlighted another initiative to strengthen the electronics manufacturing ecosystem. He mentioned that the government had introduced the Electronic Components and Semiconductors Production Promotion Scheme (SPECS) on April 1, 2020. The scope of the scheme is wide and covers various sectors of the electronics industry. It offers incentives for the production of electronic components, recycling of electronic waste and manufacturing of mechanical parts. The scheme also covers the production of micro and nano electronic components, as well as materials used in solar energy production such as photovoltaic polysilicon.