Electronics manufacturing leads PLI scheme as production jumps 146%
- IBEF
- January 19, 2026
Electronics manufacturing, particularly in the mobile phone segment, has emerged as a strong performer under the Production Linked Incentive (PLI) scheme, with production rising 146% from Rs. 2.13 lakh crore (US$ 25.67 billion) in FY21 to Rs. 5.45 lakh crore (US$ 65.66 billion) in FY25, according to a report by CareEdge Ratings, as reported by The Economic Times. The report noted that this growth was supported by foreign direct investment inflows of around Rs. 332 crore (US$ 4 billion), with a significant share directed towards PLI beneficiary companies, reflecting strong investor confidence in India’s electronics manufacturing ecosystem. The total budgetary outlay for the PLI scheme across 14 sectors stands at Rs. 1.97 lakh crore (US$ 23.75 billion). Disbursements under the scheme gathered pace in FY25, with incentives worth Rs. 10,112 crore (US$ 1.22 billion) released during the year, marking the highest annual payout since the scheme’s inception. While disbursements were initially gradual, the trend indicates acceleration, with further incentive payouts expected in FY26 as production-linked milestones continue to be met.
The expansion of electronics production under the Production Linked Incentive (PLI) scheme reflects India’s ambition to build a competitive and globally integrated manufacturing base. Industry stakeholders noted that rising production has been accompanied by increasing export opportunities, stronger supply chains, and deeper participation by both domestic and foreign companies. The report highlighted that cumulative investments of around Rs. 2 lakh crore (US$ 24.12 billion) and incremental production exceeding Rs. 18.7 lakh crore (US$ 225.54 billion) were achieved under the PLI framework up to September 2025, underscoring the significant impact of the scheme on scaling up electronics manufacturing. As incentives continue to be disbursed and capacity expansion progresses, electronics manufacturing under the PLI scheme is expected to remain a key driver of India’s industrial growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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