**Executive Summary**
This document is the answer to Unstarred Question No. 916 in Lok Sabha on February 4, 2026, concerning the introduction of Production Linked Incentive (PLI) schemes for Electronics and IT Hardware. It details the growth in domestic electronics manufacturing and exports due to these schemes. The response highlights the government's efforts to boost domestic production, reduce import dependency, and integrate MSMEs and startups into global value chains.
**Key Points / Main Content**
* **Growth in Electronics Manufacturing:**
* Electronics goods production increased from ~1.9 Lakh Cr in 2014-15 to ~11.3 Lakh Cr in 2024-25 (6 times increase).
* Export of electronics goods increased from ~0.38 Lakh Cr in 2014-15 to ~3.3 Lakh Cr in 2024-25 (8 times increase).
* Mobile phone production increased from ~0.18 Lakh Cr to ~5.5 Lakh Cr (28 times increase).
* Mobile phone exports increased from ~0.01 Lakh Cr to ~2 Lakh Cr (127 times increase).
* **PLI Schemes:**
* PLI Scheme for Large Scale Electronics Manufacturing (LSEM) was launched in 2020.
* Mobile phone production more than doubled between FY 2019-20 and FY 2024-25, making India the 2nd largest mobile manufacturer.
* India became a net exporter of mobile phones, attracting Rs. 15,172 Cr investment and generating 1,71,448 jobs by December 2025.
* PLI 2.0 for IT Hardware was launched in 2023 with Rs. 16,531.64 crore total cumulative production, Rs. 856.64 crore total cumulative investment, and 4,776 direct jobs till December 2025.
* **Other Initiatives:**
* 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 Order 2017 (Preference to Make in India).
* Reforms in taxation, including rationalization of tariff structure and exemptions on basic custom duty.
* 100% FDI allowed in electronics manufacturing.
* **Electronics Component Manufacturing Scheme (ECMS):**
* Aims to develop a robust component manufacturing ecosystem.
* Applications for projects with investment value of Rs. 1.15 lakh crores have been received.
* **MSME Integration:**
* MeitY's schemes encourage MSME integration into domestic and global value chains.
* Under PLI Scheme for LSEM, 14 out of 32 beneficiaries are MSMEs.
* Under PLI Scheme for IT Hardware, 8 out of 27 beneficiaries are MSMEs.
* Many MSMEs have participated in SPECS and ECMS schemes.
* All 24 projects approved under the Design Linked Incentive (DLI) Scheme belong to domestic MSMEs/Startups.
**Impact Analysis**
**MSMEs and Startups**
*Impact:*
Increased opportunities for integration into domestic and global electronics value chains through various government schemes.
*Action Required:*
Explore and apply for benefits under SPECS, ECMS, PLI schemes (LSEM and IT Hardware), and the Design Linked Incentive (DLI) Scheme.
**Electronics Manufacturers (Large Scale)**
*Impact:*
Financial incentives to boost production, exports, and investment in electronics manufacturing.
*Action Required:*
Leverage the PLI schemes to expand production and exports, and invest in R&D and infrastructure.
**General Public/Consumers**
*Impact:*
Increased availability of domestically manufactured electronics goods, potential price reductions, and employment opportunities.
*Action Required:*
Support domestically manufactured products.
**Government of India**
*Impact:*
Achievement of "Make in India" and "Atmanirbhar Bharat" visions, reduced import dependency, increased exports, and job creation.
*Action Required:*
Continue to monitor the effectiveness of the PLI schemes and other initiatives, and make adjustments as needed to achieve desired outcomes.
Key Entities Referenced
Production Linked Incentive (PLI) schemes: Incentives to boost domestic electronics manufacturing and IT hardware output and exports.
Ministry of Electronics and Information Technology: The primary ministry responsible for initiatives in electronics and IT hardware manufacturing.
Make in India: Government initiative to encourage domestic manufacturing, impacting the electronics sector.
Electronics Component Manufacturing Scheme (ECMS): Scheme to develop component manufacturing ecosystem by attracting investments.
Semicon India Programme: Government initiative to encourage the manufacturing of electronic components and semiconductors.
† O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 916
TO BE ANSWERED ON: 04.02.2026
INTRODUCTION OF PLI SCHEMES FOR ELECTRONICS AND IT HARDWARE
†916. SHRI GOPAL JEE THAKUR:
SHRI DAMODAR AGRAWAL:
SHRI CHAVDA VINOD LAKHAMSHI:
SHRI BHOJRAJ NAG:
SHRI RAJKUMAR CHAHAR:
SHRI CHANDRA PRAKASH JOSHI:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the details of the growth witnessed by the Government in domestic electronics manufacturing output
and exports after the introduction of Production Linked Incentive (PLI) schemes for Electronics and
Information Technology hardware;
(b) the contribution of initiatives supported by Ministry in reducing import dependency and generating
employment in the areas of mobile manufacturing consumer electronics and hardware components;
(c) whether any steps have been taken by the Government to connect Indian Micro, Small and Medium
Enterprises (MSMEs) and startups with global electronics value chains;
(d) if so, the details thereof; and
(e) the number of Indian MSMEs and startups currently engaged in the production of electronics and
IT hardware in the country including Rajasthan?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (e): 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 Remarks
Production 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 ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 times
phones (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. 16,531.64 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 the
value 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 PLIScheme 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.
******