India Unveils $2.7 Billion PLI Scheme to Boost Electronics Manufacturing and Job Creation

In a bold push to enhance its global standing in electronics manufacturing, the Indian government has announced a new $2.7 billion Production-Linked Incentive (PLI) scheme, aimed at scaling domestic production, reducing import dependence, and attracting large-scale investments in the sector.

This initiative is expected to draw $7 billion in private investment over the next five years and generate an estimated 91,000 direct jobs, signaling a significant boost to India’s “Make in India” and “Digital India” agendas. The announcement aligns with the government’s broader vision of positioning India as a reliable and competitive alternative to global manufacturing hubs like China and Vietnam.

Under the new scheme, incentives will be provided to eligible manufacturers based on incremental sales of locally manufactured goods. The government hopes to spur production of smartphones, semiconductors, displays, laptops, and consumer electronics — key segments that contribute to both exports and domestic consumption.

The Electronics and IT Ministry stated that the revised PLI is more inclusive, offering greater incentives to MSMEs (micro, small and medium enterprises), and places a renewed emphasis on supply chain development and component manufacturing, which have traditionally lagged behind in India’s electronics ecosystem.

Analysts see this move as a strategic response to ongoing global supply chain shifts, driven by geopolitical tensions and companies seeking China-plus-one manufacturing strategies. India’s growing digital infrastructure, talent pool, and policy support make it a natural contender to absorb this shift.

This is not the first time India has bet big on manufacturing. Previous iterations of the PLI scheme helped catalyze production in sectors like mobile phones, pharmaceuticals, and telecom gear. However, the new version is said to have broader eligibility, a faster disbursal mechanism, and performance-linked bonuses aimed at driving sustained, scalable impact.

Industry players have welcomed the move, calling it “timely and forward-looking.” If executed effectively, the scheme could elevate India’s contribution to the global electronics value chain, enhance exports, and create quality employment across urban and semi-urban regions.