India approves ₹25,000 cr PLI scheme for electronic components
New Delhi: The Union Cabinet approved a ₹25,000 crore production-linked incentive (PLI) scheme aimed at boosting electronic component manufacturing, media reports said.
Moneycontrol reported that the initiative focuses on key components such as batteries, displays, camera modules, and printed circuit boards (PCBs), with the goal of reducing import dependency and strengthening India's electronics supply chain.
Rising electronics production
India’s electronics production has surged over the past six years, reaching $115 billion in 2024—driven primarily by mobile manufacturing from companies like Apple and Samsung.
The PLI scheme is expected to further attract both domestic and global investment while generating employment in manufacturing and related sectors.
China partnerships on the table
Government consultations indicate openness to joint ventures with Chinese firms involved in the global supply chain, a move that has encouraged Indian electronics manufacturing services (EMS) companies to initiate high-level talks with Chinese suppliers, according to the Moneycontrol report.
The government, however, will assess these partnerships through an interministerial committee chaired by the Home Ministry, ensuring adequate checks and balances.
Industry moves fast
With the easing of restrictions on China-linked collaborations, Indian EMS firms are accelerating negotiations to secure strategic partnerships.
Dixon Technologies has already formed a joint venture with China's HKC to manufacture display modules by Q3 2025 and is exploring similar tie-ups for precision components, camera modules, mechanicals, and battery packs.
Meanwhile, Zetwerk, a $2 billion manufacturing firm, is in discussions for technology transfers and joint ventures with global component manufacturers, including Chinese firms, and is considering acquisitions to scale its electronics component business.
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