Production Linked Incentive Schemes Strengthen India's Electronics Manufacturing Ecosystem, Boosting - 29th July 2026 - Ministry of Electronics and Information Technology - Gazette Notification PDF
Read or download the official PDF of this gazette notification issued by the Ministry of Electronics and Information Technology on 29th July 2026. Classified under Press Release.
Executive Summary
This report details the significant expansion of India’s electronics manufacturing ecosystem over the last 12 years, driven by various policy initiatives and Production Linked Incentive (PLI) schemes. Key outcomes include a seven-fold increase in electronics production and the emergence of smartphones as India’s top exported individual commodity in FY 2025-26. A notable recent milestone is the Union Cabinet's approval of the Semicon 2.0 program on July 15, 2026, with an outlay of ₹1,27,500 crore.
Key Points / Main Content
Sectoral Growth and Exports
Production Increase: Overall electronics production rose from ~₹1.9 lakh crore in 2014-15 to ~₹13.11 lakh crore in 2025-26.
Export Surge: Electronics exports grew eleven-fold to over ₹4 lakh crore; mobile phone exports specifically increased 165 times.
Mobile Manufacturing: India is now the second-largest mobile manufacturer globally, with 99.2% of mobile phones used in the country being domestically produced.
Performance of PLI Schemes
Large Scale Electronics Manufacturing (LSEM): As of March 2026, this scheme has significantly exceeded targets, achieving 294% of its investment goal (₹20,587 crore) and 132% of its export goal (₹6,43,323 crore).
PLI 2.0 for IT Hardware: Launched in 2023 to create a hub for laptops, tablets, and servers; it has already generated a cumulative production of ₹24,385.89 crore.
Domestic Value Addition: The external evaluation of PLI-LSEM reported an increase in domestic value addition to 23% in FY 2023-24.
Component and Semiconductor Initiatives
Electronics Component Manufacturing Scheme (ECMS): 75 applications have been approved to develop a robust supply chain for items like PCBs, camera modules, and capital goods.
Semicon 2.0: Following the success of the initial Semicon India Programme, this new phase aims to accelerate the design and development of Indian-designed chips and expand fabrication units.
MSME Integration: Over 85 MSMEs have been supported by the Ministry of Electronics & IT (MeitY) to act as ancillary partners in global value chains.
Employment and Social Impact
Job Creation: The sector supports approximately 25 lakh direct and indirect jobs, with 12 lakh attributed to the mobile manufacturing ecosystem.
Gender Inclusion: In high-precision mobile manufacturing segments, women constitute nearly 70% of the workforce.
Impact Analysis
Electronics Manufacturers (LSEM & IT Hardware)Impact
These entities benefit from financial incentives that have catalyzed investments of approximately ₹96,000 crore in the mobile ecosystem. They have transitioned from being net importers to net exporters.
Action Required
Approved applicants must continue to meet production and investment milestones to claim incentives; state-wise approved applicants (32 for LSEM and 27 for IT Hardware) must manage operations across the 12-13 involved states.
MSMEsImpact
MSMEs are increasingly integrated into global supply chains as partners, providing essential sub-assemblies and ancillary services.
Action Required
Leverage MeitY schemes to upgrade capabilities and maintain roles as critical supply chain partners for larger manufacturers.
Semiconductor Industry StakeholdersImpact
Access to a ₹1,27,500 crore outlay under Semicon 2.0 for the development of fabrication units (fabs), advanced packaging, and domestic chip design.
Action Required
Participate in the acceleration of Indian-designed chips and the establishment of semiconductor fabrication and support infrastructure.
Workforce (Especially Women)Impact
The sector provides high-precision manufacturing employment, specifically fostering gender-inclusive growth.
Action Required
The workforce must continue to engage in high-precision segments, which currently employ 12 lakh people in the mobile manufacturing value chain alone.
Key Entities Referenced
PLI Scheme for Large Scale Electronics Manufacturing (LSEM): A key government initiative launched in 2020 to boost domestic manufacturing and exports of mobile phones and specific electronic components.
PLI Scheme 2.0 for IT Hardware: A follow-up scheme launched in 2023 to develop a domestic manufacturing ecosystem for laptops, tablets, servers, and other IT hardware.
Electronics Component Manufacturing Scheme (ECMS): A program aimed at deepening the supply chain by supporting the manufacturing of key electronic components, sub-assemblies, and capital goods.
Semicon 2.0: An expanded initiative focused on accelerating the design and development of Indian chips, semiconductor fabrication units, and advanced packaging.
Ministry of Electronics & Information Technology (MeitY): The primary government body responsible for implementing policy initiatives and schemes to develop India's electronics manufacturing ecosystem.
Ministry of Electronics & IT
Production Linked Incentive Schemes
Strengthen India's Electronics Manufacturing
Ecosystem, Boosting Domestic Production,
Exports and Value Addition
Electronics Production Grows Seven-Fold to Over ₹13 Lakh
Crore, Exports Increase Eleven-Fold to Over ₹4 Lakh Crore in
the Last 12 Years
Electronics Manufacturing Ecosystem Supports Around 25
Lakh Jobs, with Mobile Manufacturing Employing Around 12
Lakh People and Women Constituting Nearly 70% of
Workforce in High-Precision Manufacturing Segments
प्रव तथ: 29 JUL 2026 5:02PM by PIB Delhi
Driven by 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.
The Government adopted a well thought out strategy to develop India’s electronic manufacturing
ecosystem - beginning with the manufacturing of finished products, followed by sub-assemblies,
components, and eventually machinery and tools. At the same time, the Government focused on creating
the necessary infrastructure to support electronics manufacturing.
As a result of these initiatives, India has emerged as a global electronics manufacturing hub. Electronic
manufacture in India has expanded significantly in the last 12 years, which can be seen from the
following statistics:
# 2014-15 2025-26 Remarks
Production of electronics goods (₹) ~1.9 Lakh Cr ~13.11 Lakh Cr Increased 7 times
Export of electronics goods (₹) ~38 thousand Cr ~4.24 Lakh Cr Increased 11 times
Production of mobile phones (₹) ~18 thousand Cr ~6.27 Lakh Cr Increased 33 times
Export of mobile phones (₹) ~15 hundred Cr ~ 2.59 Lakh Cr Increased 165 timesThe electronics production has increased from Rs. 11.32 lakh crores in FY 2024-25 to Rs. 13.11 Lakh
crores in FY 2025-26 growing at a year-on-year growth rate of 15.8% in the last one year.
The growth in electronics manufacturing has been possible due to various measures taken by the
Government in the last 12 years to promote domestic production, exports and value addition of electronic
goods including mobile phones, IT Hardware and electronic components. Some of the major initiatives
include:
PLI Scheme for Large Scale Electronics Manufacturing
PLI Scheme 2.0 for IT Hardware
Electronics Component Manufacturing Scheme (ECMS)
Semicon India Programme
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem
in India.
Public Procurement (Preference to Make in India) Order to promote using made in India goods.
Allowing 100% FDI in the sector
Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (LSEM)
The 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.
Performance under PLI Scheme for LSEM (till March, 2026) is as follows:
Category Target for 5 Years Actual Reported till March 2026 (Cumulative)
Investment (Rs. Cr) 7,000 20,587
(294%)
Production (Rs. Cr) 8,12,550 11,61,581
(142%)
Exports (Rs. Cr) 4,87,530 6,43,323
(132%)
Smartphones, which did not feature in top 100 exported commodities in 2014 have now emerged as
India’s top exported individual commodity in FY 2025-26 by surpassing petroleum, gems and
jewellery.
India has now reached a point where 99.2% of the mobile phones being used in India are made in
India.
India today is the second largest mobile manufacturer in volume terms.
The country has transitioned from being a net importer of mobile phones in 2014 to becoming a net
exporter.
PLI-LSEM has catalysed investments of approximately Rs. 96,000 crore (around USD 14 billion) in
the mobile manufacturing ecosystem across the country.The external evaluation study of the PLI Scheme for LSEM reported that, alongside the significant
increase in production and exports, domestic value addition (DVA) increased to 23% in FY 2023–
24.
The details of state-wise approved applicants under the PLI Scheme for LSEM are placed at Annexure-
I.
PLI Scheme 2.0 for IT Hardware
The Government of India has also launched PLI Scheme 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. As on date, the
Schemes have led to a total cumulative production of Rs. 24,385.89 crore, total cumulative investment of
Rs. 1056.36 crore and total cumulative employment of 5,216 (direct jobs).
The details of state-wise approved applicants under PLI Scheme 2.0 for IT Hardware are placed at
Annexure-II.
To further strengthen the domestic electronics manufacturing ecosystem and enhance domestic value
addition, the Government has taken the following initiatives:
Electronics Component Manufacturing Scheme (ECMS)
The Government launched ECMS to further deepen the supply chain ecosystem and develop a robust
electronics component ecosystem in the country.
It aims to attract investments across key components such as Printed Circuit Boards (PCBs), passive
components, electro-mechanical components, sub-assemblies, camera modules, optical transceivers, and
capital goods required for electronics manufacturing.
The scheme envisaged an investment of Rs 59,350 crore from the domestic/global manufacturers in
India and direct employment of 91,600 during the scheme tenure.
As on date, a total 75 applications for 23 products have been approved under ECMS. These approved
units are expected to attract investments of Rs 61,671 crore, generate projected production of Rs 4.51
lakh crore, and create 65,040 direct employment opportunities.
Government schemes have led to developments of many Micro, Small and Medium Enterprises
(MSMEs) which have got integrated into the supply chain of global value chains. MSMEs play a critical
role as supply chain partners of these global value chains and also by supporting them in various
ancillary activities of electronic manufacture. So far more than 85 MSMEs have been supported under
various schemes of MeitY.
Semicon 2.0
Further, to improve domestic value addition and as well as larger ecosystem development in
semiconductor technologies which form a substantial part of the bill of material of any electronic
product, the Government had launched the Semicon India Programme. So far 12 projects have been
approved under this programme for a total committed investment of Rs 1.64 lakh crores. Out of these 3
projects have already started commercial production. Building on the success of this programme, the
Union Cabinet approved Semicon 2.0 on 15th July 2026 with outlay of the program is Rs 1,27,500 Cr.
Semicon 2.0 aims to accelerate design and development of Indian designed chips, expand semiconductor
fabrication units (fabs), advanced packaging and also larger semiconductor ecosystem development by
supporting materials and gases, equipment needed for semiconductor manufacturing.
Employment generation in the electronics ecosystemAs on date, India's electronics manufacturing sector supports ~25 lakh jobs (direct and indirect)
reflecting the sector’s growing role in creating industrial employment opportunities. The Mobile
manufacturing ecosystem alone currently employs around 12 lakh people (both direct and in-direct)
across the value chain. The electronics manufacturing sector has emerged as an important sector for
gender-inclusive industrial growth, with a few high-precision mobile phone manufacturing segments
employing almost 70% of the total workforce as women.
***
Annexure-I
State wise approved applicants under PLI Scheme for LSEM
S. No. State No. of Applicants
1 Andhra Pradesh 2
2 Delhi 1
3 Gujarat 1
4 Haryana 1
5 Himachal Pradesh 1
6 Karnataka 6
7 Kerala 1
8 Maharashtra 7
9 Rajasthan 1
10 Tamil Nadu 4
11 Telangana 1
12 Uttar Pradesh 6
Total 32
Annexure-II
State wise approved applicants under PLI Scheme 2.0 for IT HardwareS. No. State No. of Applicants
1 Andhra Pradesh 1
2 Delhi 1
3 Gujarat 1
4 Haryana 2
5 Karnataka 2
6 Kerala 1
7 Madhya Pradesh 1
8 Maharashtra 3
9 Pondicherry 1
10 Rajasthan 1
11 Tamil Nadu 6
12 Telangana 1
13 Uttar Pradesh 6
Total 27
This information was submitted by Union Minister of State for Electronics and Information Technology
Shri Jitin Prasada in Lok Sabha on 29.07.2026.
****
Vinod Kumar / Kanishk Sharma
(रलीज़ आईडी: 2291171) आगंतुक पटल : 1975
इस वज्ञ को इन भाषाओ ंम पढ़: ही