IESA Welcomes PLI 2.0 to Accelerate Electronics Manufacturing

The India Electronics and Semiconductor Association (IESA), India's premier industry association representing the Electronics System Design and Manufacturing (ESDM) and semiconductor ecosystem, has welcomed the Government of India's announcement of the new Production Linked Incentive (PLI), PLI 2.0 (MPMS), approved at an outlay of INR 62,500 crore over five years, describing it as a timely and strategic intervention that will sustain India's manufacturing momentum and accelerate the country’s ambition of becoming a US$ 400 billion electronics manufacturing economy by fiscal 2030.

The first phase of the PLI scheme has been one of India's most successful industrial policy initiatives. Since its launch, the scheme's total incentive outlay has expanded from about INR 1.9 lakh crore to nearly INR 11.5 lakh crore. Electronics, particularly mobile phone exports, have grown more than eight-fold. Mobile phone manufacturing has increased nearly 28 times, making India the second-largest mobile phone manufacturer globally and transforming the country from a net importer to a significant exporter of smartphones. The scheme has also attracted over INR 17,500 crore in investments, generated production exceeding INR 11 lakh crore, created over 1.75 lakh direct jobs and catalyzed a vibrant Electronics Manufacturing Services (EMS) ecosystem.

IESA has been an active partner in this transformation, working closely with MeitY, India Semiconductor Mission (ISM), state governments, and industry to provide policy recommendations, facilitate industry dialogue, and promote investments, innovation, talent development, and global collaborations that strengthen India's electronics and semiconductor ecosystem.

Commenting on the announcement, Ashok Chandak, President, IESA and SEMI India, said, “The success of the first PLI scheme has fundamentally transformed India's electronics manufacturing landscape by creating global-scale production capacity, attracting leading multinational companies, generating employment, and positioning India as a trusted global manufacturing destination. MPMS comes at the right time to sustain this momentum and move the industry towards the next phase of growth with an ambition to nearly double cumulative production to about INR 39 lakh crore and cumulative exports to about INR 15 lakh crore, while creating 60,000 additional direct jobs.”

He further added, “The next phase of India's electronics journey must focus on strengthening the domestic value chain. While manufacturing scale has grown significantly, domestic value addition has improved from around 8–10 percent to nearly 20 percent. With the combined implementation of the new PLI, the Electronics Components Manufacturing Scheme (ECMS), the Semicon India Programme, the Electronics Manufacturing Clusters (EMC) Scheme and the INR 1 lakh crore Research, Development and Innovation (RDI) Scheme, India has the opportunity to increase domestic value addition towards 40 percent over the coming years. Together, these initiatives will encourage component manufacturing, semiconductor packaging, indigenous product development, advanced manufacturing technologies and design-led innovation, creating a globally competitive, and resilient electronics ecosystem.”

IESA noted that the new PLI scheme will encourage greater investments across the electronics value chain, including consumer electronics, industrial electronics, telecom equipment, automotive electronics, medical electronics, strategic electronics, and next-generation products enabled by AI, IoT, Industry 4.0, and edge computing.

Commenting on the occasion, Navin Bishnoi, Chairperson, IESA, added that IESA believes the convergence of these complementary policy initiatives marks the beginning of a new phase for India's electronics industry. While the SEMICON India Programme is establishing the country's semiconductor manufacturing capabilities, ECMS will accelerate localization of electronic components, EMC will provide world-class manufacturing infrastructure, and the RDI Scheme will strengthen indigenous technology development and product innovation.

Together with the new MPMS scheme, these initiatives create a comprehensive roadmap for building an integrated electronics value chain—from design and IP creation to components, semiconductors, manufacturing and exports.

IESA also believes that the next phase should focus on creating globally competitive Indian products and technology companies. Alongside manufacturing scale, greater emphasis on design, intellectual property creation, deep-tech startups, skilled talent, and indigenous innovation will enable India to capture a larger share of the global electronics value chain.

Through its initiatives in policy advocacy, international partnerships, startup enablement, talent development, and industry platforms such as IESA Vision Summit and Semicon India, IESA will continue to work with the government and industry to support this transformation.

India's electronics demand is expected to grow rapidly over the next decade, driven by AI, digitalization, electric mobility, industrial automation, telecommunications, and smart infrastructure. IESA believes the renewed policy support will further enhance investor confidence, attract global supply chains, create high-value employment, and accelerate India's emergence as a trusted global hub for electronics design, manufacturing and innovation.

Concluding, Chandak said, “India is no longer just a large consumer market for electronics—it is emerging as a global hub for design, manufacturing and innovation. The new PLI scheme, supported by ECMS, the Semiconductor India Programme, EMC and the RDI Scheme, provides the policy continuity needed to realize the vision of Atmanirbhar Bharat. Together, these initiatives will accelerate India's journey towards a US $400 billion electronics manufacturing economy by 2030 while significantly increasing domestic value addition and strengthening India's position in global electronics and semiconductor value chains.”

Image Source: IESA