PLI Scheme for Electronics Manufacturing Attracts Rs 10,213 Cr Investment, Says Minister

The Production Linked Incentive (PLI) scheme for electronics manufacturing has shown strong performance, attracting a total investment of Rs 10,213 crore by December 2024, according to Union Minister of State for Electronics and Information Technology, Jitin Prasada, in a written response to the Rajya Sabha this week.

Under this scheme, the sector has achieved a cumulative production value of Rs 662,247 crore and created 137,189 additional direct jobs, as per the minister's statement.

The scheme has significantly boosted mobile phone production, with numbers rising from around 60 million units in 2014-15 to approximately 330 million units in 2023-24—an increase of over five times in the last decade. In terms of value, mobile phone production has surged from Rs 19,000 crore in 2014-15 to Rs 422,000 crore in 2023-24, growing at a compound annual growth rate (CAGR) of 41 percent.

"Due to policies of the government for promotion of electronics manufacturing, India has become a mobile phone exporter now from a mobile importing country in 2014-15," the minister said in his reply.

Additionally, mobile phone exports have seen a dramatic rise, increasing from Rs 22,868 crore in 2020-21 to Rs 129,074 crore in 2023-24, with a CAGR of 78 percent since the introduction of the PLI Scheme for Large Scale Electronics Manufacturing.

In 2015, 74 percent of mobile phones sold in India were imported. Now, 99.2 percent of the mobile handsets in use across the country are manufactured domestically.

Alongside mobile phone manufacturing, India has also seen the growth of production for various electronic components and sub-assemblies, including batteries, chargers, PCBA, camera modules, display modules, enclosures, USB cables, ferrites, and glass covers. "This clearly indicates that the complete ecosystem for mobile phone manufacturing is developing in the country. The existing component manufacturers are expanding their existing capacity and new players are also exploring India as a potential market," the minister added.

The government also recognizes the contributions of smaller players focusing primarily on domestic markets. Domestic mobile phone manufacturers, under the PLI scheme, have invested a total of Rs 787 crore, resulting in a cumulative production value of Rs 34,111 crore and creating 25,288 direct jobs by December 2024.

"As the scheme is performing well, no changes in this scheme are anticipated at present," the minister concluded in his reply.