Union Budget 2025: India Proposes ₹25,000 Crore PLI Scheme For Electronics Components

Union Budget 2025 Updates: India Proposes ₹25,000 Crore PLI Scheme For Electronics Components

The electronics manufacturing sector is likely to get a major boost as India is gearing up to strengthen this sector with the Production Linked Incentive (PLI) scheme worth ₹25,000 crore. The scheme is aimed at boosting domestic production of key electronic components.

The electronics production has grown remarkably and more than doubled in the last six years to $115 billion in 2024. The Finance Ministry has already approved the proposal, and the Ministry of Electronics and Information Technology (MeitY) is set to seek Cabinet approval ahead of the Union Budget 2025, according to a CNBC-TV18 report.

Focus on Reducing Import Dependence

The proposed PLI scheme is likely going to target the sub-assemblies of printed circuit boards (PCBs), batteries, display units, and camera modules. While these components are crucial for the electronics industry, this PLI initiative aims to reduce India’s reliance on imports, particularly from China. The scheme is expected to promote local manufacturing, deepen domestic supply chains and improve value addition within the country.

Incentivising Key Components Manufacturing

The proposed initiative is expected to attract significant domestic and foreign investment into India’s electronics ecosystem. The focus on PCB manufacturing could particularly serve as a cornerstone for developing a robust supply chain for assembling mobile phones, televisions, and other electronic devices.

Disclaimer: The information provided is for educational purposes only. Please seek expert advice before making investment decisions.