Executive Summary:
The Ministry of Electronics and Information Technology (MeitY) addressed Lok Sabha question No. 559 on July 23, 2025, regarding the impact of the Production Linked Incentive (PLI) Scheme on electronics manufacturing. The response highlights the scheme's role in transforming India into a major electronics and mobile phone manufacturing hub and details the growth in domestic production, export volumes, and Foreign Direct Investment (FDI) within the sector. The PLI scheme has promoted domestic manufacturing through financial incentives and has led to increased investment and job creation in the electronics sector.
Key Points / Main Content:
* **Government Initiatives and Policies:**
* The National Policy on Electronics (NPE) 2019 has been the guiding document.
* PLI Schemes for Large Scale Electronics Manufacturing (LSEM) and IT Hardware have been notified.
* Other initiatives include SPECS, EMC, EMC 2.0, Public Procurement Preference to Make in India Order 2017, tax reforms, and 100% FDI allowance in electronics manufacturing.
* **Impact on Electronics Manufacturing:**
* Value addition for electronics manufacturing has reached 18-20% across various items.
* India has become the second-largest mobile phone manufacturing country globally.
* Significant increase in production and export of electronics goods and mobile phones.
* Mobile phone imports have decreased significantly as a proportion of total demand.
* **Growth Statistics:**
* Electronics goods production increased from INR 1.9 Lakh Cr (2014-15) to INR 11.3 Lakh Cr (2024-25).
* Electronics goods exports increased from INR 38 thousand Cr to INR 3.27 Lakh Cr.
* Mobile manufacturing units increased from 2 to 300.
* Mobile phone production increased from INR 18 thousand Cr to INR 5.45 Lakh Cr.
* Mobile phone exports increased from INR 1,500 Cr to INR 2 Lakh Cr.
* **PLI Scheme Investment and Outcomes:**
* PLI for LSEM attracted INR 12,390 Cr investment, led to INR 8,44,752 Cr production, INR 4,65,809 Cr exports, and 1,30,330 direct jobs (till Jun 2025).
* PLI 2.0 for IT Hardware attracted INR 717.13 Cr investment, led to INR 12,195.84 Cr production, and 5,056 direct jobs (till Jun 2025).
* Total FDI in electronics manufacturing in the last 5 years (since FY 2020-21) is USD 4,071 Mn, with USD 2,802 Mn contributed by MeitY PLI beneficiaries.
Impact Analysis:
* Electronics Manufacturers:
* Impact: Benefiting from financial incentives, increased production and export opportunities, and access to investment.
* Action Required: Continue to invest in manufacturing capabilities, leverage PLI schemes, and enhance export potential.
* Government (MeitY):
* Impact: Achievement of policy goals related to electronics manufacturing, increased FDI, and job creation.
* Action Required: Monitor the progress of PLI schemes, address any challenges faced by manufacturers, and refine policies to further boost the sector.
* Indian Economy:
* Impact: Increased domestic production, reduced import dependence, higher export revenue, and job creation.
* Action Required: Support the growth of the electronics manufacturing sector through infrastructure development, skill enhancement, and favorable policies.
Key Entities Referenced
Production Linked Incentive PLI Scheme: A scheme to boost electronics manufacturing by providing incentives based on production.
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology policy.
National Policy on Electronics NPE 2019: A policy framework by the Government of India to promote the electronics sector.
PLI Scheme for Large Scale Electronics Manufacturing LSEM: A specific PLI scheme focused on large-scale electronics manufacturing.
PLI Scheme for IT Hardware: A PLI scheme specifically for IT hardware manufacturing.
Electronics Manufacturing Clusters EMC: A scheme for developing and supporting electronics manufacturing clusters.
Foreign Direct Investment FDI: Investment from foreign entities into the Indian electronics sector.
Make in India Order 2017: Government initiative to promote domestic manufacturing by giving preference to locally manufactured products in public procurement.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 559
TO BE ANSWERED ON: 23.07.2025
PLI SCHEME IN ELECTRONICS MANUFACTURING
559. SMT. MALA RAJYA LAXMI SHAH:
SHRI TEJASVI SURYA: SHRI BALABHADRA MAJHI:
SHRI JANARDAN MISHRA:
SHRI GODAM NAGESH:
SHRI BHARTRUHARI MAHTAB:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the manner in which the Production Linked Incentive (PLI) Scheme has impacted the
electronics manufacturing sector, particularly in transforming India from a net importer to a net
exporter of mobile phones; and
(b) the details of growth in domestic production, export volumes and Foreign Direct Investment
(FDI) in the electronics sector under the PLI Scheme?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a): Under the aegis of National Policy on Electronics (NPE) 2019, MeitY has notified
Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing (LSEM)
and Production Linked Incentive (PLI) Scheme for IT Hardware.
Government has taken various initiatives including PLI Schemes, in last ten years which resulted
in establishment of a strong electronics manufacturing ecosystem in India.
Government initiatives that made such transformation include:
• Production linked incentives (PLI) for large scale electronics manufacturing
• Production linked incentives (PLI) for IT hardware
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors
(SPECS)
• Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme
• 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
Industry estimates that the value addition for electronics manufacturing in India has reached 18-
20% across various items.
PLI Scheme for Large Scale Electronics Manufacturing has significantly impacted Mobile
manufacturing sector in India particularly in transforming India from a net importer to a netexporter of mobile phones. Bharat is now the second largest mobile manufacturing country in the
world.
Growth of electronics goods production and exports are hereunder :
# 2014-15 2024-25 Remarks
Production of electronics goods 1.9 Lakh Cr 11.3 Lakh Cr Increased 6 times
(Rs.)
Export of electronics goods (Rs.) 38 thousand Cr 3.27 Lakh Cr Increased 8 times
Mobile manufacturing units 2 300 Increased 150
times
Production of mobile phones (Rs.) 18 thousand Cr 5.45 Lakh Cr Increased 28
times
Export of mobile phones (Rs.) 1,500 Cr 2 Lakh Cr Increased 127
times
Mobile phone imported (units) 75% of the 0.02% of the
total demand total demand
(b): The PLI Scheme for LSEM has already attracted a cumulative investment of INR 12,390
Cr, led to a cumulative production of INR 8,44,752 Cr with exports of INR 4,65,809 Cr and
generated additional employment of 1,30,330 (Direct jobs) till Jun’25.
The PLI Scheme 2.0 for IT Hardware have attracted a cumulative investment of INR 717.13 Cr,
led to a cumulative production of INR 12,195.84 Cr and generated additional employment of 5,056
(direct jobs) till Jun’25.
Total FDI in field of electronics manufacturing in last 5 years (i.e. since FY 2020-21) is USD 4,071
Mn, cumulative FDI of USD 2,802 Mn has been contributed by MeitY PLI beneficiaries.
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