In a landmark move aimed at strengthening India’s position in the global electronics manufacturing landscape, the Ministry of Information Technology has finalized a new Production Linked Incentive (PLI) scheme dedicated to the production of critical electronic components. With an allocated budget of approximately ₹23,000 crores over a span of six years, this initiative is set to build upon the success of the smartphone assembly sector, which has already witnessed significant localization within the country. The primary objective is to significantly raise domestic value addition in the broader electronics ecosystem.
Expanding the Scope of Indigenous Electronics Production:
The PLI scheme will specifically target the manufacturing of essential electronic components that serve as the backbone of modern electronic devices. These include high-demand items such as display modules, printed circuit board assemblies (PCBAs), camera sub-assemblies, lithium cell enclosures and other vital elements like resistors, ferrites and capacitors. By facilitating the domestic production of these components, the initiative aims to reduce dependency on imports and make India a self-reliant electronics hub.
Employment Generation and Fiscal Incentives Over Six Years:
The economic impact of this policy move is expected to be substantial. Over the six-year period, the Government projects that nearly 91,600 direct jobs will be created across the electronics manufacturing services (EMS) sector. Moreover, annual incentive disbursements are anticipated to vary between ₹2,300 crores and ₹4,200 crores, depending on how well participating companies achieve their defined investment, output and employment goals each year. These structured payouts are designed to motivate sustained growth and long-term commitment to manufacturing in India.
Dixon Technologies Emerges as a Leading Contender:
Among the companies expected to benefit significantly from the new PLI scheme is Dixon Technologies (India) Limited. With a market capitalization of ₹84,231 crores, Dixon’s stock climbed by approximately 1.6% to close at ₹14,124.95 on Friday. During the third quarter of FY25, the company witnessed a remarkable 117% increase in revenue from operations, reaching ₹10,454 crores. Net profit also saw a substantial jump, rising by nearly 122.7% year-on-year to ₹216 crores. Established in 1993, Dixon Technologies has developed a strong foothold in the manufacturing of a diverse array of electronic products, including mobile phones, lighting equipment, consumer durables and telecom devices. The company’s forward-looking strategy also involves substantial investment in semiconductor operations, essential for assembling electronics such as air conditioners and refrigerators. Notably, it operates a joint venture with Japanese partner Rexxam Rexxam Dixon Electronics Private Limited which is focused on producing printed circuit boards specifically for air conditioning systems.
Kaynes Technology Positioned to Ride the ESDM Wave:
Another key player benefiting from this policy direction is Kaynes Technology India Limited. The company’s shares surged by nearly 5.3%, reaching ₹4,885 on Friday. For the third quarter of FY25, the firm posted a 30% rise in operational revenue, clocking ₹661 crores, while net profits rose 46.6% year-on-year to ₹66 crores. Kaynes Technology is recognized for its expertise in designing and manufacturing advanced electronic modules that cater to multiple industrial domains. With its strategic alignment to the Electronic System Design and Manufacturing (ESDM) sector and growing capabilities in the semiconductor and PCB segments, the company is uniquely placed to take full advantage of the incentives and demand surge driven by the new PLI scheme.
Syrma SGS Technology Registers Robust Quarterly Growth:
Syrma SGS Technology Limited has also gained attention following the announcement of the new electronics-focused PLI policy. The company’s market capitalization stood at ₹8,345 crores and its stock price rose by nearly 1.6% to ₹475.6 on Friday. In the third quarter of FY25, Syrma SGS posted operational revenue of ₹869 crores, marking a 23% increase compared to the same period last year. Its net profit soared by an impressive 165% year-on-year, totaling ₹53 crores. Syrma SGS specializes in producing a wide range of electronic sub-assemblies and finished products. These include memory modules, magnetic induction coils, power adapters, fiber optic assemblies and RFID devices. The company’s diverse product line positions it strongly within India’s evolving electronics manufacturing sector, especially with growing demand for components used in modern tech applications.
New Policy Expected to Reshape India’s Electronics Landscape:
This latest Government initiative is more than just a financial support scheme, it marks a transformative step in reshaping India’s electronics sector by promoting deep manufacturing and technological self-reliance. Through sustained investment, strategic incentives and a focus on creating employment, the policy is expected to trigger a wave of innovation and competitiveness among Indian electronics manufacturers.
Long-Term Impact to Elevate India’s Global Electronics Standing:
With strategic policy support and rising private sector participation, India is set to enhance its global footprint in electronics manufacturing. The introduction of this ₹23,000 crores PLI scheme not only strengthens the supply chain but also encourages international and domestic firms to invest in India’s long-term industrial growth. As the policy unfolds over the next six years, stakeholders across the ecosystem are optimistic about a more resilient, innovation-driven and export-oriented electronics industry.
Source : https://cordite.co.in/indias-electronics-manufacturing-gets-a-boost-with-%E2%82%B923000-crore-pli-scheme/
