Large-scale electronics PLI catalyses Rs 96,000 cr investment in mobile manufacturing: MoS IT

The production-linked incentive scheme for large-scale electronics manufacturing catalysed Rs 96,000 crore investment in the domestic mobile production ecosystem, Parliament was informed on Wednesday.

Minister of State for Electronics and IT, Jitin Prasada, in a written reply to the Lok Sabha, said that following initiatives taken by the government, electronics production in the country has increased from Rs 11.32 lakh crore in FY 2024-25 to Rs 13.11 lakh crore in FY 2025-26, growing at a year-on-year growth rate of 15.8 per cent. “PLI-LSEM has catalysed investments of approximately Rs 96,000 crore (around USD 14 billion) in the mobile manufacturing ecosystem across the country,” Prasada noted.

According to an external evaluation study of the PLI Scheme for LSEM (large-scale electronics manufacturing), alongside a significant rise in production and exports, domestic value addition (DVA) increased to 23 per cent in FY2023-24, he pointed out.

The PLI-LSEM was launched in 2020 to boost indigenous production of mobile phones.

“Smartphones, which did not feature in the 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,” the minister said.

Prasada said that the government 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 1,056.36 crore and total cumulative employment of 5,216 direct jobs,” he said.

The minister said the government’s Electronics Component Manufacturing Scheme (ECMS) envisaged an investment of Rs 59,350 crore from the domestic and global manufacturers in India and direct employment of 91,600 during the scheme tenure.

“As on date, a total of 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,” Prasada said.

The minister said 12 projects have been approved under the Semicon India Programme entailing committed investment of Rs 1.64 lakh crore.

“Out of these, 3 projects have already started commercial production,” Prasada said.

The government, on July 15, launched Semicon 2.0 with an outlay of Rs 1,27,500 crore. The new scheme aims to accelerate design and development of Indian chips, expand semiconductor fabrication units (fabs), advanced packaging and also larger semiconductor ecosystem development by supporting materials and gases, equipment needed for semiconductor manufacturing.

“As on date, India’s electronics manufacturing sector supports around 25 lakh jobs (direct and indirect), reflecting the sector’s growing role in creating industrial employment opportunities. Mobile manufacturing ecosystem alone currently employs around 12 lakh people (both direct and indirect) across the value chain,” Prasada said.