The government is on the verge of approving a Production-Linked Incentive (PLI) scheme aimed at enhancing the electronics manufacturing sector in India, expected within the next few months. This scheme has generated significant interest, with many companies, both established and new, applying to manufacture key components such as display modules, cameras, and batteries.
An official source told the Economic Times that a project management agency is likely to be selected shortly to review applications, facilitating rapid approvals. The government is expediting the process.
The cabinet had previously approved the PLI scheme for passive and non-semiconductor electronic components on March 28. Atul Lall, Managing Director of Dixon Technologies, highlighted the positive industry feedback and the scheme’s importance in fostering a significant ecosystem.
The PLI scheme is a strategic initiative, with several companies planning investments. Tata Electronics, Dixon, Zetwerk, and Foxconn are among those investing via the scheme. This effort is key to encouraging domestic manufacturing in India.
Consumers can anticipate potential benefits. Local production of electronic parts can lower costs, potentially leading to reduced prices for electronic products.
Foxconn, through its subsidiary Yuzhan Technology, is reportedly considering applying for the smartphone display module category. Zetwerk, based in Bengaluru, plans to invest substantially in the production of electromechanical components such as PCBs and enclosures.