New Delhi | Nov 17, 2025 | SKY LINK TIMES |
PLI Scheme:
India is preparing a major shift in its electronics manufacturing ecosystem, with the government setting a target to increase local value addition in smartphones and key electronic components to 35–40% in the coming years. Union IT and Electronics Minister Ashwini Vaishnaw announced the move during an interaction with the media in New Delhi on Monday, marking the beginning of the next phase of the Production-Linked Incentive (PLI) scheme.
The government has begun working closely with smartphone makers and component suppliers to shape PLI 2.0, which aims to deepen India’s electronics value chain and reduce dependence on imported parts.
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Government Push to Boost Domestic Manufacturing
According to Vaishnaw, 24 electronics component projects already approved under the current scheme — along with new investments anticipated under ECMS 2.0 — will be central to expanding domestic production capabilities.
> “We expect significantly high local value addition. As more components start getting fully manufactured in India, we’ll be reaching the 35–40% range,” the minister said.
This reflects the government’s long-term plan to position India as a strong global manufacturing hub by shifting from assembly-driven production to end-to-end component manufacturing.
India to Develop 30 Strategic Chipsets
In a major announcement, Vaishnaw confirmed that India is planning to design and manufacture 30 strategic chipsets within the country. These chipsets will support essential sectors, including:
Smartphones and consumer electronics
Telecom and networking
Defence and security systems
Industrial and mobility applications
He added that these chipsets will form the technological backbone of India’s semiconductor ambitions, helping the country become more self-reliant in high-value electronic components.
PLI 2.0 Expected to Drive Next Electronics Revolution
The current PLI scheme — widely regarded as one of India’s most successful incentive programmes — ends this financial year. It has already attracted major global smartphone manufacturers and turned India into one of the world’s fastest-growing electronics production bases.
Work on PLI 2.0 is now underway, with active participation from industry stakeholders. The focus of the new scheme will be on deepening the supply chain, expanding component manufacturing, and creating globally competitive Indian electronics companies.
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Industry Leaders Welcome Move
Industry bodies have expressed strong support for the government’s ambitious targets.
Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), said the new measures mark a defining moment for India’s manufacturing landscape.
> “An electronics manufacturing revolution is on the way. ECMS will anchor global value chains in India and create globally competitive champions,” he said.
Mohindroo added that India is entering a new era of rapid expansion, driven by innovation, investment, and supportive policies.
A Major Step Toward a $500 Billion Electronics Vision
With PLI 2.0, ECMS 2.0, and a strategic chipset programme in motion, India is moving rapidly toward its vision of achieving $500 billion in electronics manufacturing in the coming years.
The government’s target of 40% local value addition marks a critical milestone in India’s journey toward becoming a global powerhouse in electronics and semiconductor manufacturing.
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