Electronics manufacturing has emerged as the leading sector under India’s Production Linked Incentive (PLI) scheme, with a sharp rise in output driven largely by the mobile phone segment. According to a report by CareEdge Ratings, electronics production increased by 146% from ₹2.13 lakh crore in FY21 to ₹5.45 lakh crore in FY25, highlighting the effectiveness of the incentive-led manufacturing push.
Strong Investment Support and Policy Backing
The rapid expansion has been supported by foreign direct investment inflows of around ₹332 crore (approximately US$ 4 billion), with a significant portion flowing into companies covered under the PLI scheme. This reflects growing investor confidence in India’s electronics manufacturing ecosystem. The overall budgetary allocation for the PLI scheme across 14 sectors stands at ₹1.97 lakh crore, underlining the government’s long-term commitment to strengthening domestic manufacturing.
Disbursements under the PLI framework gained momentum in FY25, with incentives worth ₹10,112 crore released during the year—the highest annual payout since the scheme was launched. While incentive payments were initially gradual, the acceleration in FY25 suggests a stronger flow of disbursements going forward, with further payouts expected in FY26 as companies continue to meet production-linked targets.
Rising Output, Exports, and Supply Chain Depth
The surge in electronics production reflects India’s broader objective of building a globally competitive and integrated manufacturing base. Industry participants noted that higher production volumes have gone hand in hand with rising exports, more resilient supply chains, and deeper participation from both domestic and multinational players.
According to the report, cumulative investments of around ₹2 lakh crore and incremental production exceeding ₹18.7 lakh crore were achieved under the PLI scheme up to September 2025. These numbers underscore the substantial impact of the initiative in scaling up electronics manufacturing capacity and improving India’s position in global value chains.
Outlook Remains Positive
With incentives continuing to be released and capacity expansion progressing across the sector, electronics manufacturing is expected to remain a key growth driver for India’s industrial landscape. The sustained momentum under the PLI scheme positions the electronics sector as a cornerstone of the country’s manufacturing and export ambitions.
Summary:
Electronics manufacturing has led the PLI scheme, with production rising 146% from FY21 to FY25, supported by strong FDI inflows and accelerating incentive disbursements. With cumulative investments of about ₹2 lakh crore and incremental output exceeding ₹18.7 lakh crore, the sector is set to remain a major contributor to India’s manufacturing growth and global competitiveness.
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.