India’s PLI Scheme for Electronic Components: A Game Changer for Local Manufacturing and Global Ambitions

India has been making steady progress in electronics manufacturing, for years, particularly in assembling smartphones and consumer electronics. But here’s the challenge—while we’ve been great at putting things together, we still rely a lot on imported components. However, that’s about to change.

The Government of India, on March 28, 2025, announced a US$2.7 billion Production Linked Incentive (PLI) scheme for electronic components. To reduce imports and thereby boost local production, this scheme has a tenure of six years, with a one-year gestation period.