India approves PLI proposals for 22 electronics projects worth ₹42,000cr
What's the story
The Indian government has approved 22 investment proposals under the Electronics Component Production-Linked Incentive (PLI) scheme. The approvals are expected to bring in investments worth ₹41,863 crore and create nearly 34,000 jobs. The output from these projects is estimated at a whopping ₹2.58 lakh crore. Over half of the total approved investments (nearly ₹22,000 crore) have been directed toward the Apple ecosystem so far.
Major players
Dixon Technologies and Foxconn among approved projects
The third tranche of the Electronics Component PLI scheme has also approved projects from Dixon Technologies, Samsung Display Noida Pvt Ltd, Foxconn's Yuzhan Technology India Pvt Ltd, and Hindalco Industries. Notably, two proposals from Dixon Technologies were included in this approval round. One of them is a joint venture with Kunshan Q Tech Microelectronics in Uttar Pradesh where Dixon holds a 51% stake while the rest is owned by a Singapore-based subsidiary of a Chinese company.
Strategic focus
Aiming for a domestic value chain in electronics
The approved projects under the Electronics Component PLI scheme are aimed at creating a domestic value chain for critical electronic components such as camera modules, display modules, and printed circuit boards (PCBs). The scheme also focuses on improving India's export competitiveness in the electronics component sector. This is part of a broader strategy to reduce import dependence on critical electronic components and boost high-value manufacturing in India.
Geographical spread
Projects to be set up across 8 states
The approved projects will be set up across eight Indian states—Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan. This geographical spread highlights the government's push for balanced growth in electronics manufacturing across the country. The third tranche of approvals covers manufacturing across 11 target product segments including mobile phones, telecom equipment, consumer electronics, strategic electronics, automotive, and IT hardware.