India Approves ₹23,000 Crore Plan for Electronics Manufacturing - 28th March 2025
On March 28, the Union Cabinet of India approved the Production Linked Incentive (PLI) scheme for non-semiconductor electronic components with an outlay of ₹22,919 crore. The scheme aims to promote manufacturing in sectors like telecommunications, consumer electronics, automotive, medical devices, and the power sector.
The decision was made under the leadership of Prime Minister Narendra Modi. Union Electronics and Information Technology Minister Ashwini Vaishnaw stated that the scheme would generate direct employment for 91,600 people and attract investments worth ₹59,350 crore. This is the first such scheme by the government focused on promoting the manufacturing of passive electronic components.
Non-semiconductor electronic components are essential for controlling electricity, though they do not generate or enhance electricity themselves. Minister Vaishnaw further added that the total package of the scheme is ₹22,919 crore and will be completed over six years.
Key Benefits of the Scheme
The scheme is expected to meet the needs of several industries including telecommunications, consumer electronics, automotive, medical devices, and the power sector. According to the government, the scheme will generate an expected production output of ₹4.56 lakh crore over the period.
According to the Electronics and Semiconductor Industry Association of India (ESIA), the production of non-semiconductor components in India was approximately $13 billion in 2022. By 2026, this figure is expected to reach $20.7 billion and $37 billion by 2030.
Potential Challenges and Government Support
ESIA has also warned that without government support, the segment could face a deficit of $248 billion (approximately ₹21 lakh crore) by 2030. This deficit would have to be covered by imports. ESIA has requested a ₹72,500 crore support package from the government to bridge the gap in the next six years.
