In a major push to boost domestic value addition in electronics, the Indian government has approved 22 new applications from global and local manufacturing giants under its flagship incentive scheme. The approvals, granted by the IT Ministry, include proposals from Foxconn, Tata Electronics, Samsung, Dixon Technologies, and Hindalco Industries.
Massive Investment and Employment Commitments
The selected companies have committed to invest a substantial Rs 41,863 crore under the Production Linked Incentive (PLI) scheme for electronic components. This investment is projected to create over 33,000 direct jobs across multiple states including Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh.
This fresh tranche follows the clearance of 24 applications last year, which promised an investment of Rs 12,704 crore. Cumulatively, the scheme has now approved 46 applications with a total proposed investment of Rs 54,567 crore, potentially generating direct employment for approximately 51,000 individuals.
Diverse Manufacturing Focus Across 11 Segments
The newly approved companies will manufacture critical components across 11 high-priority segments. This diversification is aimed at reducing import dependency and strengthening the complete electronics supply chain within India.
The key product segments include:
- Printed Circuit Boards (PCBs)
- Capacitors
- Camera Modules
- Display Subassemblies
- Supply chain items like Anode Material and Laminates
These components have wide-ranging applications in mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware.
Strategic Approvals for Key Players
The approvals mark a significant step for Apple's supply chain in India. Foxconn's Yuzhan Technologies (India) Pvt Ltd and Tata Electronics have been cleared to manufacture enclosures for mobile phones and IT hardware. Motherson Electronic Components also received approval for the same.
Samsung has been approved to manufacture display modules locally. In a boost for the camera module ecosystem, Dixon Technologies and its subsidiary, Kunshan Q Tech Microelectronics, received nods for manufacturing optical transceivers and camera modules, respectively.
The government has also addressed critical import dependencies. Approvals were given to:
- NPSPL Advanced Materials for Anode material, crucial for lithium-ion cell manufacturing.
- Wipro Global Engineering and Electronic Materials for Laminate (Copper clad), the base material for PCBs.
- Hindalco Industries for Aluminium extrusion for mobile phone enclosures, a segment currently reliant on imports.
Nine applicants, including India Circuits, Vital Electronics, and BPL Limited, were approved for PCB manufacturing. For capacitors, essential for energy storage, approvals went to Deki Electronics and global giant TDK India.
Government's Vision for Quality and Design
While announcing the approvals on Friday, IT Minister Ashwini Vaishnaw urged the successful applicants and the broader electronics sector to focus on in-house product design and maintain the highest quality standards. The emphasis is on making Indian-manufactured components export-competitive in the global market.
This latest round of approvals under the Rs 23,000 crore PLI scheme underscores India's strategic intent to move beyond mere assembly to deep-rooted component manufacturing. By incentivizing the production of core inputs, the policy aims to create a resilient, self-sufficient, and globally integrated electronics manufacturing hub.
