PLI schemes and targeted incentives
The government launched the PLI scheme for large-scale electronics manufacturing (LSEM) in 2020, initially targeting mobile phones and specified components. That programme has attracted investments totalling about ₹14,065 crore and helped expand mobile manufacturing units from just two in 2014 to more than 300 today.
An allied PLI for IT hardware covering laptops, tablets, servers and ultra-small form factor (USFF) devices has drawn further investment (around ₹846 crore so far), supporting the production of higher-value ICT hardware in India.
Electronics Components Manufacturing Scheme (ECMS) and semiconductors
To deepen the domestic value chain, the Electronics Components Manufacturing Scheme (ECMS) was launched in 2025. ECMS focuses on printed circuit boards (PCBs), camera modules, electrical and mechanical parts and other components. The scheme has elicited investment proposals of about ₹1.15 lakh crore against an estimated pipeline of ₹59,350 crore.
Parallelly, the Semicon India Programme — initiated in 2022 — aims to create a full semiconductor ecosystem including design, fabrication, assembly, test and packaging. In under three years, authorities approved ten semiconductor units with a cumulative investment of roughly ₹1.6 lakh crore spanning silicon fabs, silicon-carbide fabs and advanced packaging facilities.
Design ecosystem, skills and startups
The government’s Design Linked Incentive (DLI) scheme supports chip and SoC design for satellite communications, drones, IoT, AI devices, telecom equipment and more. To nurture talent, the Chips to Start-ups programme has provided modern design tools to 394 universities and start-ups; designers from 46 universities have fabricated test chips at the Semiconductor Labs in Mohali.
Major global and domestic semiconductor design firms have established design centres in India, and cutting-edge work including designs for advanced process nodes is increasingly being done locally, signalling a maturing design ecosystem.
Jobs, global supply chains and export momentum
Industry estimates indicate the electronics sector generates employment for roughly 25 lakh people, spanning assembly lines, design houses, component suppliers and ancillary services. Electronics is now the country’s third-largest export category by value.
While imports of electronic goods reached about $98.6 billion in FY 2024–25, exports rose to $38.5 billion, showing improving trade dynamics. Policymakers stress that building domestic suppliers for specialised gases, materials and tools will further reduce dependence on imports and strengthen India’s role in global supply chains.
Challenges and the road ahead
Despite strong progress, experts note several challenges: scaling up local component makers, ensuring consistent quality across suppliers, and securing long-term investments in capital-intensive fabs. The government’s policy mix — tax and customs reforms, calibrated FDI rules, BIS certification and domestic content measures aims to address these gaps and incentivise broader localisation.
With multiple semiconductor units approved and the ECMS and DLI schemes gaining traction, India is positioning itself as a trusted manufacturing partner. Continued investment in skills, R&D and production ecosystems will be critical to convert policy momentum into resilient, export-oriented capacity.
Official sources and references
The details above were provided by Union Minister Shri Ashwini Vaishnaw in a Rajya Sabha reply on 5 December 2025. For primary references and government releases, see the Press Information Bureau and Ministry of Electronics & IT publications.
