PLI 2.0: To boost the domestic production of electronic products, the Government of India launched Production Linked Incentive (PLI) schemes for Large Scale Electronics Manufacturing (LSEM) and IT Hardware.
Now, under the same window, the Centre is preparing to roll out a new version of PLE for mobile phone manufacturing in the country.
According to a press release, PLI 2.0 aims to create a strong domestic ecosystem for IT hardware like laptops, tablets, and servers, attracting investments and reducing dependence on imports from foreign countries. Under the new scheme, three applicants with manufacturing units in Maharashtra are MSMEs, and global companies are already manufacturing laptops and servers within India. However, the Modi government wants at least 55 percent of the mobile phone parts to be manufactured in India. At present, this figure is only around 18-20%.
Electronics Components Manufacturing Scheme
The Electronics Components Manufacturing Scheme (ECMS) covers components such as PCBs, electro-mechanical components, passive components, sub-assemblies, optical transceivers, camera modules, and capital goods. Projects worth Rs 1.15 lakh crore in investment and Rs 10.35 lakh crore in production have been proposed. Reports mentioned that the Budget 2026 increased the scheme outlay to Rs 40,000 crore. 46 applications across 11 states in India have been approved and are expected to attract investments and generate employment opportunities.
Finance Ministry expresses concern
The Ministry of Finance has, however, expressed concern that although India has made strides in smartphone manufacturing and export, several expensive electronic components still have to be imported. Therefore, the PLI 2.0 scheme will focus not only on increasing sales but also on local sourcing and component manufacturing in India.
75 factories approved under ECMS to start production in 2026
Under the old PLI scheme, which was launched in 2020, a total of 32 companies have exceeded investment, production, and export targets. So far, Rs 17,519 crore investment, Rs 11.01 lakh crore production, and Rs 6.27 lakh crore exports have been made. The government is hopeful that several of the 75 factories approved under ECMS will start production this year.