The Indian government is expected to approve a Production-Linked Incentive (PLI) scheme for manufacturing electronic devices within the next two to three months, aimed at boosting the Indian electronics industry. The scheme has received an enthusiastic response, with both established and new companies applying to manufacture components like display modules, cameras, and batteries.
A senior official, discussing the matter, told the Economic Times that a project management agency is likely to be appointed within a month to review the applications, followed by a quick approval process. The government is working on a fast-track mode to grant approvals.
The cabinet approved the PLI scheme for passive and non-semiconductor electronic components on March 28. Atul Lall, Managing Director of Dixon Technologies, an electronics manufacturing services company, said the feedback from the industry has been positive and very encouraging, with many companies eager to participate in the scheme, which will be crucial for building a large ecosystem.
This PLI scheme is a strategic move, and several companies are planning investments through it. Companies like Tata Electronics, Dixon, Zetwerk, and Foxconn are among those interested. The initiative is a significant step towards promoting domestic manufacturing in India.
How will this benefit consumers? If electronic parts are manufactured locally, the cost of these parts could decrease, which, in turn, could lead to lower prices for electronic goods.
Sources indicated that Foxconn, through its subsidiary Yuzhan Technology, is considering applying under the smartphone display module category. Bengaluru-based unicorn Zetwerk announced on June 23 that it plans to invest ₹500-800 crore in the manufacturing of electromechanical components like printed circuit boards (PCBs), enclosures, heatsinks, and sensors.