To strengthen India’s electronics industry, the central government is poised to greenlight a Production-Linked Incentive (PLI) scheme for electronics manufacturing in the coming months. The scheme has garnered considerable interest, with numerous companies, both new and established, submitting applications to manufacture essential components such as display modules, cameras, and batteries.
An official source revealed to the Economic Times that a project management agency will likely be assigned within a month to assess the applications, expediting the approval process. The government is fast-tracking the approvals.
The cabinet had previously approved a PLI scheme for passive and non-semiconductor electronic components on March 28. Atul Lal, Managing Director of Dixon Technologies, noted the industry’s enthusiastic response to the initiative, emphasizing its importance in fostering a robust ecosystem.
The PLI scheme is a strategic initiative, with many companies preparing to invest via the scheme. Tata Electronics, Dixon, Zetwerk, and Foxconn are among those planning investments. The focus is on promoting domestic manufacturing in India.
The advantages for consumers are clear. Local manufacturing of electronic parts can drive down costs, potentially leading to more affordable electronic products.
Foxconn, through its subsidiary Yuzhan Technology, is reportedly considering an application in the smartphone display module category. Zetwerk, a unicorn based in Bengaluru, announced on June 23 plans to invest significantly in the manufacturing of electromechanical components, including PCBs, enclosures, and sensors.