What's Happening?
India's electronics manufacturing sector has experienced remarkable growth, driven by the government's Production Linked Incentive (PLI) Scheme. Launched in 2020, the scheme aims to boost domestic mobile phone production, which has more than doubled from
₹2.14 lakh crore in FY 2019-20 to a projected ₹5.5 lakh crore in FY 2024-25. This growth has positioned India as the second-largest mobile manufacturer globally. The PLI scheme has also increased exports from ₹0.27 lakh crore to ₹2 lakh crore in the same period. The initiative is part of India's broader strategy to enhance its electronics manufacturing ecosystem, aligning with the Make in India and Atmanirbhar Bharat visions.
Why It's Important?
The success of India's PLI scheme underscores the country's potential to become a global hub for electronics manufacturing. By transitioning from a net importer to a net exporter of mobile phones, India is strengthening its economic position and reducing dependency on foreign imports. This growth is expected to attract significant investments and create thousands of jobs, contributing to economic development. The initiative also highlights the effectiveness of government policies in fostering industrial growth and innovation. As India continues to expand its electronics manufacturing capabilities, it could play a pivotal role in the global supply chain, influencing market dynamics and competition.
What's Next?
With the PLI scheme's success, India is likely to continue implementing policies that support electronics manufacturing. The government has already introduced PLI 2.0 for IT hardware, aiming to boost domestic production of laptops and tablets. As these initiatives progress, India could see further increases in production and exports, solidifying its position in the global market. The ongoing efforts to enhance the electronics manufacturing ecosystem, including reforms in taxation and foreign direct investment policies, are expected to attract more international companies to invest in India. This could lead to further technological advancements and economic growth in the coming years.
