Union Cabinet greelights ₹25,000cr plan for electronic component production
What's the story
The Union Cabinet of India has approved a ₹25,000 crore production-linked incentive (PLI) scheme for the electronics sector.
The move is aimed at boosting the manufacturing of key components such as batteries, displays, camera modules, and printed circuit boards (PCBs).
The scheme would help reduce India's dependence on imports and bolster its electronics supply chain.
Growth trajectory
India's electronics production has more than doubled in 6 years
India's electronics production has more than doubled in the last six years. The sector's value hit $115 billion in 2024, largely due to mobile manufacturing giants such as Apple and Samsung.
The PLI scheme's introduction is expected to further boost domestic and global investment while generating employment opportunities in India's manufacturing and allied sectors.
Policy shift
Government open to joint ventures with Chinese firms
The Indian government has been willing to permit joint ventures with Chinese firms that are part of the global supply chain and work with international brands.
This shift in policy has prompted Indian Electronic Manufacturing Services (EMS) companies to hold high-level negotiations with Chinese players in global value chains (GVCs).
Each proposal for such partnerships will be considered on a case-by-case basis by an inter-ministerial committee chaired by the Home Ministry.
Strategic partnerships
Dixon Technologies and Zetwerk eye joint ventures
Dixon Technologies has announced a JV with China's HKC to manufacture display modules by July-September 2025.
The company is also looking at similar partnerships for precision components, mechanicals, camera modules, and battery packs.
Zetwerk, a $2 billion manufacturing firm, is looking at JVs and technology transfers with global component manufacturers (including Chinese firms) as well as acquisitions to expand its electronics components business.