PLI Scheme for Large Scale Electronics Manufacturing
Nature and Purpose
- Type: Central Sector Scheme → fully funded by the Government of India.
- Purpose: To boost domestic manufacturing and make India a global champion in electronics production.
This means the scheme is not just about import substitution, but about creating world-class companies in India that can compete globally
Nodal Agency
- The scheme is implemented through a Project Management Agency (PMA), which manages applications, approvals, and disbursement of incentives.
Tenure
- For Round Two, the tenure is 4 years, starting from 01 April 2021.
Objectives
➡️ To attract large investments in the electronics value chain.
This covers:
- Mobile phone manufacturing
- Semiconductor packaging
- Electronic components including Assembly, Testing, Marking, and Packaging (ATMP) units
So, the scheme covers both finished products (mobiles) and critical components (semiconductors, ATMP).
Salient Features
(A) Eligibility
- Only those companies that are engaged in manufacturing of target segments in India are eligible.
- Importers or traders do not qualify—this is purely for manufacturing.
(B) Incentives
- Incentives range from 4% to 6% of incremental sales (over base year).
- Incentive period: 5 years.
- Example: If a company sold ₹1,000 crore more mobiles compared to the base year, it would receive up to ₹60 crore as incentive.
(C) Target Segments
- Mobile phones
- Specified electronic components (such as semiconductor parts, ATMP units, etc.)
This ensures both final products and their supply chain are developed domestically.
(D) Base Year
- Financial Year 2019–20 is treated as the base year.
- Incremental sales and investment are measured relative to this year.
Significance
- Attracts global electronics giants to manufacture in India.
- Promotes domestic value addition in electronics, reducing dependence on imports.
- Strengthens India’s role in the global electronics supply chain, particularly in mobiles and semiconductors.
- Generates employment and creates an ecosystem for electronics R&D and design.
Quick Recall for UPSC
- Type: Central Sector Scheme
- Launched: 2020 (PLI overall), Round 2 applicable from 2021
- Objective: Boost large-scale electronics manufacturing, esp. mobiles and semiconductors
- Incentive: 4%–6% on incremental sales over base year (2019–20)
- Tenure: 5 years (4 years in Round 2)
- Target Segments: Mobiles, specified electronic components, ATMP units
✨ In short, this scheme = Financial Incentives + Electronics Value Chain Development + Global Competitiveness. It pushes India from being just an electronics consumer market to becoming a global electronics manufacturing hub.