Government's PLI to Boost Electronics, End Foreign Dependency, Create Jobs
The Indian government is making strides toward fostering an independent electronics manufacturing ecosystem with the introduction of benchmarks and a production-linked incentive (PLI) scheme for the electronics component sector. This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’ (self-reliant India) and aims to strengthen the supply chain to boost exports.
The Ministry of Electronics and Information Technology has engaged with industry stakeholders to gather insights for formulating the PLI scheme for the sector. The goal is to reduce original equipment manufacturers’ (OEMs) reliance on countries like China and Vietnam for electronic components and sub-assemblies, thereby bolstering domestic production capabilities.
Industry leaders welcomed the government's move, emphasizing its potential to create thousands of direct and indirect jobs, while also catalyzing the growth of a comprehensive electronics ecosystem. A. Gururaj, Managing Director of Optiemus Electronics Ltd, expressed support for the initiative, stating that the expansion of the PLI scheme will significantly contribute to achieving an ‘Atmanirbhar Bharat.’
Avneet Singh Marwah, CEO of Super Plastronics Private Limited, highlighted the importance of the PLI scheme for fostering domestic component manufacturing. He emphasized that moving away from reliance on imports can enhance competitiveness through more competitive pricing and strengthen supply chain infrastructure.
The PLI scheme for electronics is seen as a game-changer by industry experts, who noted that it will help fortify the country's growing electronics ecosystem. Prabhu Ram, Head of Industry Intelligence Group at CMR, said that by incentivizing local production, the policy will address the critical bottleneck of dependence on foreign suppliers, thus boosting domestic manufacturing capabilities.
The government's move builds on the ‘Make in India’ program launched a decade ago, which has already resulted in the creation of nearly 12 lakh new jobs in the electronics manufacturing sector. As electronics manufacturing has surpassed $100 billion, expanding the PLI scheme to include electronics components represents the next phase in realizing India's vision for a self-reliant, resilient, and competitive electronics industry.
The Ministry of Electronics and Information Technology has engaged with industry stakeholders to gather insights for formulating the PLI scheme for the sector. The goal is to reduce original equipment manufacturers’ (OEMs) reliance on countries like China and Vietnam for electronic components and sub-assemblies, thereby bolstering domestic production capabilities.
Industry leaders welcomed the government's move, emphasizing its potential to create thousands of direct and indirect jobs, while also catalyzing the growth of a comprehensive electronics ecosystem. A. Gururaj, Managing Director of Optiemus Electronics Ltd, expressed support for the initiative, stating that the expansion of the PLI scheme will significantly contribute to achieving an ‘Atmanirbhar Bharat.’
Avneet Singh Marwah, CEO of Super Plastronics Private Limited, highlighted the importance of the PLI scheme for fostering domestic component manufacturing. He emphasized that moving away from reliance on imports can enhance competitiveness through more competitive pricing and strengthen supply chain infrastructure.
The PLI scheme for electronics is seen as a game-changer by industry experts, who noted that it will help fortify the country's growing electronics ecosystem. Prabhu Ram, Head of Industry Intelligence Group at CMR, said that by incentivizing local production, the policy will address the critical bottleneck of dependence on foreign suppliers, thus boosting domestic manufacturing capabilities.
The government's move builds on the ‘Make in India’ program launched a decade ago, which has already resulted in the creation of nearly 12 lakh new jobs in the electronics manufacturing sector. As electronics manufacturing has surpassed $100 billion, expanding the PLI scheme to include electronics components represents the next phase in realizing India's vision for a self-reliant, resilient, and competitive electronics industry.
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