Parliament Question: Impact of PLI scheme on electronics manufacturing

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY RAJYA SABHA UNSTARRED QUESTION NO. 868 TO BE ANSWERED ON: 06.02.2026 IMPACT OF PLI SCHEME ON ELECTRONICS MANUFACTURING 868. SHRI SADANAND MHALU SHET TANAVADE: SHRI MAYANKKUMAR NAYAK: SMT. KIRAN CHOUDHRY: SMT. SANGEETA YADAV: SMT. REKHA SHARMA: SHRI DEEPAK PRAKASH: SMT. DARSHANA SINGH: SHRI BABUBHAI JESANGBHAI DESAI: DR. MEDHA VISHRAM KULKARNI: SHRI RYAGA KRISHNAIAH: SHRI LAHAR SINGH SIROYA: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) the growth in domestic electronics manufacturing output and exports since the launch of Production Linked Incentive (PLI) schemes for electronics and IT hardware, year-wise budget allocations and State-wise data; (b) the impact of MeitY-supported initiatives in reducing import dependence, generating employment and strengthening sectors such as mobile manufacturing, consumer electronics and hardware components, State-wise; (c) steps taken to support Indian MSMEs and Startups in integrating into global electronics value chains, including State-wise participation and benefits; and (d) whether Government is considering innovative measures, such as technology incubators or Public-private Partnerships (PPP), to make India’s electronics ecosystem globally competitive? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) to (d): Driven by the Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat, Government of India has taken several policy initiatives to develop a complete ecosystem of electronics manufacturing. As a result of which, electronics manufacturing in India has expanded significantly in the last 11 years, which can be seen from the following statistics: # 2014-15 2024-25 RemarksProduction of ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times electronics goods (Rs.) Export of electronics ~0.38 Lakh Cr ~3.3 Lakh Cr Increased 8 times goods (Rs.) Production of mobile ~0.18 Lakh Cr ~5.5 Lakh Cr Increased 28 times phones (Rs.) Export of mobile phones ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 times (Rs.) Government of India launched the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM) in 2020 to boost domestic manufacturing of mobile phones in the country. The mobile phone production has more than doubled from Rs. 2.14 Lakh crores in FY 2019-20 to Rs. 5.5 Lakh crores in FY 2024-25. As a result, India has emerged as a 2nd largest mobile manufacturer in the world. The mobile phone exports have increased ~8 fold from Rs. 0.27 Lakh crores in FY 2019-20 to Rs. 2 Lakh crores in FY 2024-25. India has become a net exporter of Mobile Phones from being an importer of the same in 2014. Till December 2025, the Scheme has attracted investment of Rs. 15,172 Cr and generated additional employment of 1,71,448 persons. Subsequently, Government of India has also launched PLI 2.0 for IT Hardware in 2023 to create a robust domestic manufacturing ecosystem for IT hardware (laptops, tablets, servers, etc.), attract large investments, reduce import reliance, and make India a trusted global supply chain hub. Till December 2025, the Schemes have led to a total cumulative production of Rs. 16,531 crore, total cumulative investment of Rs. 856.64 crore and total cumulative employment of 4,776 (direct jobs). To reduce import dependency and generate employment, Government has undertaken various initiatives for development of electronics manufacturing ecosystem to support mobile phone manufacturing, consumer electronics, industrial electronics, strategic electronics, auto electronics, telecom etc. in the last 11 years which includes: • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) • Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme • Semicon India Programme • Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically manufactured products in public procurement • Reforms in taxation including rationalization of tariff structure, exemption on basic custom duty on capital goods, etc. • Allowing 100% FDI in electronics manufacturing, subject to applicable laws / regulations Electronics Component Manufacturing Scheme (ECMS) The recently launched Electronics Components Manufacturing Scheme (ECMS) aims to develop robust component manufacturing ecosystem by attracting investments (global/domestic) across thevalue chain. The scheme has received unprecedented response from the industry so far. Applications for projects having investment value of Rs. 1.15 lakh crores against the target investment of Rs. 59,350 crores have been received. MeitY’s schemes encourage MSME integration into domestic and global value chains. Under PLI Scheme for LSEM, out of 32 beneficiaries, 14 fall under the MSME category. Similarly, under PLI Scheme for IT Hardware, out of 27 beneficiaries, 8 are MSMEs. Further, there are many MSMEs have participated in the SPECS and ECMS schemes. On the semiconductor design part, all 24 projects approved under the Design Linked Incentive (DLI) Scheme belong to domestic MSMEs/Startups. The steps/initiatives taken by Government of India to promote electronics manufacturing are pan India initiatives and any company including MSMEs & start-ups in any State/UTs can avail benefits under these steps/initiatives. To promote innovation & a technology-led startups ecosystem for Electronics and ICT domain in the country, MeitY has undertaken following initiatives: ● TIDE 2.0 (Technology Incubation and Development of Entrepreneurs) Scheme: MeitY has initiated TIDE 2.0 Scheme in the year 2019 with an aim to promote technology-based entrepreneurship through financial and technical support to incubators. The scheme is providing support to startups through 51 selected incubators in institutes of higher learning and premier R&D organizations pan India over a period of 5 years, to handhold approximately 2000 tech startups. ● GENESIS (Gen-Next Support for Innovative Startups) Scheme: MeitY has initiated the 'Gen-Next Support for Innovative Startups (GENESIS)' Scheme with the aim to strengthen the startup ecosystem in Tier-II and Tier-III cities across India over period of five years. The scheme envisages scaling up about 1,600 technology startups, to discover, nurture and grow technology startups. ******