The Indian government is set to approve a Production-Linked Incentive (PLI) scheme to bolster the electronics manufacturing sector. This initiative is anticipated to be finalized within the next few months. The scheme has witnessed strong interest from both existing and new companies keen on manufacturing components like display modules, cameras, and batteries.
A senior official, speaking with the Economic Times, indicated that a project management agency will be appointed soon to evaluate the applications, paving the way for swift approvals. The government is committed to expediting the approval process.
The cabinet had previously approved the PLI scheme for passive and non-semiconductor electronic components on March 28. According to Atul Lall of Dixon Technologies, the response from the industry has been highly encouraging, with numerous companies eager to participate, highlighting the scheme’s role in creating a comprehensive ecosystem.
This PLI scheme is a strategic move, attracting substantial investment from various companies. Companies like Tata Electronics, Dixon, Zetwerk, and Foxconn are preparing to participate. The scheme is crucial for advancing domestic manufacturing in India.
Consumers stand to benefit as local manufacturing can reduce the cost of electronic parts, which can translate into lower prices for electronic goods.
Foxconn, through its subsidiary Yuzhan Technology, is reportedly considering applying for the smartphone display module category. Bengaluru-based Zetwerk announced plans to invest ₹500-800 crore in the manufacturing of electromechanical components like PCBs and enclosures.