The India Electronics and Semiconductor Association (IESA) has welcomed the Government of India’s new Production Linked Incentive (PLI 2.0) scheme, also known as the Mobile Phone Manufacturing Scheme (MPMS), saying it will strengthen India’s position as a global electronics manufacturing hub and support the country’s goal of building a US$400 billion electronics manufacturing industry by 2030.
The new scheme has been approved with an outlay of ₹62,500 crore over five years. According to IESA, the programme will help increase domestic manufacturing, attract fresh investments, strengthen supply chains and encourage higher value addition across the electronics sector.
IESA said the first phase of the PLI scheme played a major role in transforming India’s electronics manufacturing industry. Mobile phone production has increased nearly 28 times since the scheme was introduced, while smartphone exports have grown more than eight-fold. India has also emerged as the world’s second-largest mobile phone manufacturer. The initiative has attracted investments of over ₹17,500 crore, generated production worth more than ₹11 lakh crore, and created over 1.75 lakh direct jobs.
The industry body said it has worked closely with the Ministry of Electronics and Information Technology (MeitY), the India Semiconductor Mission, state governments and industry partners to support policy development, investments, skill building and innovation across the electronics and semiconductor sectors.
Ashok Chandak, President of IESA and SEMI India, said the first PLI scheme has helped India become a trusted global manufacturing destination by attracting leading companies and expanding production capacity. He said the new PLI 2.0 scheme will help the industry move into its next phase of growth, with the potential to increase cumulative production to around ₹39 lakh crore, raise exports to nearly ₹15 lakh crore, and create around 60,000 additional direct jobs.
He added that the next stage of growth should focus on increasing domestic value addition. While local value addition has improved from around 8-10% to nearly 20%, the combined implementation of PLI 2.0, the Electronics Components Manufacturing Scheme (ECMS), the Semicon India Programme, Electronics Manufacturing Clusters (EMC) Scheme and the Research, Development and Innovation (RDI) Scheme can help increase domestic value addition to nearly 40% in the coming years.
IESA said the new policy will encourage investments across consumer electronics, telecom equipment, industrial electronics, automotive electronics, medical devices, strategic electronics and emerging technologies such as artificial intelligence, the Internet of Things and Industry 4.0.
Navin Bishnoi, Chairperson of IESA, said these government initiatives together provide a complete roadmap for developing India’s electronics ecosystem, covering design, semiconductor manufacturing, component production, advanced manufacturing and exports. He added that stronger focus on product design, intellectual property, startups and skilled talent will help Indian companies compete globally.
IESA said India’s electronics demand is expected to grow rapidly over the coming years, driven by digitalisation, electric mobility, automation, telecommunications and smart infrastructure. The association believes the new PLI 2.0 scheme will improve investor confidence, attract global manufacturers, generate high-value jobs and further strengthen India’s role in the global electronics and semiconductor supply chain.
