Electronics Production Surges 146% Under India's PLI Scheme

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AuthorRiya Kapoor|Published at:
Electronics Production Surges 146% Under India's PLI Scheme
Overview

India's electronics manufacturing sector, particularly mobile phones, has surged 146% under the Performance Linked Incentive (PLI) scheme, reaching ₹5.45 lakh crore in FY25 from ₹2.13 lakh crore in FY21. This growth attracted significant FDI, with 70% flowing to PLI beneficiaries. Despite a slow start in disbursements, payouts are accelerating, signaling strong momentum for domestic manufacturing and supply chain strengthening.

Electronics Manufacturing Dominates PLI Scheme With 146% Production Leap

Electronics manufacturing, spearheaded by mobile phone production, has become the star performer within India's Performance Linked Incentive (PLI) scheme. Data from CareEdge Ratings reveals a dramatic 146% surge in production value, climbing from ₹2.13 lakh crore in Financial Year 2021 to ₹5.45 lakh crore by Financial Year 2025. This impressive growth was significantly bolstered by USD 4 billion in foreign direct investment, with a substantial 70% directed towards beneficiaries of the PLI scheme.

Disbursement Pace Picks Up

While the total budgetary outlay for the PLI scheme, spanning 14 sectors, is ₹1.97 lakh crore, aggregate disbursements up to September 2025 stood at ₹23,946 crore, representing just 12% of the total envisaged payouts. However, the pace of disbursement has markedly improved. Financial Year 2025 saw ₹10,112 crore in incentives disbursed, with an additional ₹19,742 crore anticipated in FY26. This upward trend follows disbursements of ₹2,968 crore in FY23 and ₹6,753 crore in FY24, indicating a robust acceleration.

Sectoral Allocations and Government Push

Large-scale electronics manufacturing secured the largest share of PLI allocations, earmarked at ₹38,645 crore. The government's commitment to bolstering domestic capabilities is also evident in substantial allocations to the automobiles and auto components sector (₹25,938 crore), solar photovoltaic modules (₹24,000 crore), and advanced chemistry cell batteries (₹18,100 crore), aligning with clean energy and electric mobility goals. Other key sectors like IT hardware, pharmaceuticals, telecom, food products, and textiles also received significant support.

Minister for Electronics and Information Technology, Ashwini Vaishnaw, recently highlighted the sector's transformation, noting a sixfold increase in electronics production and an eightfold jump in exports over the past eleven years. Electronic goods production rose from ₹1.9 lakh crore in FY15 to ₹11.3 lakh crore in FY25, with exports climbing from ₹0.38 lakh crore to ₹3.3 lakh crore in the same period.

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