New Delhi, Nov 17 The Indian government has begun working with smartphone companies to shape the next phase of the Production-Linked Incentive (PLI) scheme, Union IT and Electronics Minister Ashwini Vaishnaw said on Monday.
During media interaction on the sideline of an event here, the minister said that the aim is to increase the share of locally made components in smartphones and key electronics to 35–40 per cent over the next few years.
He said that 24 electronics component projects approved under the current scheme -- along with new investments expected under ECMS 2.0 -- will play a major role in boosting domestic value addition.
According to the minister, this growth will happen gradually as more components start being fully manufactured in India.
“We expect significantly high local value addition. I think we’ll be reaching the 35–40 per cent range by the time electronic components start getting fully manufactured,” Vaishnaw told reporters.
Vaishnaw also reiterated that the government plans to design and manufacture 30 strategic chipsets within the country.
"These chipsets will act as the backbone of India’s semiconductor ambitions, strengthening its capability to become a global tech manufacturing hub," he added.
The minister confirmed that work on PLI 2.0 for smartphones is underway with industry stakeholders. The present scheme, which ends this financial year, is widely seen as the most successful among India’s incentive programmes.
It has brought major global manufacturers to India and helped the country emerge as a leading smartphone production centre.
Industry leaders have welcomed the momentum. Pankaj Mohindroo, Chairman of ICEA, said that India is entering a new phase of growth.
“An electronics manufacturing revolution is on the way. ECMS marks a turning point in India’s electronics manufacturing journey. This scheme is the catalyst that will build one of the world’s most competitive ecosystems across components, sub-assemblies and capital goods," he said.
"When we master the machines, we master the market. ECMS will anchor global value chains in India, create globally competitive Indian champions in every major product vertical, and accelerate our march toward the Prime Minister’s vision of $500 billion in electronics manufacturing. This is India’s next industrial revolution, and we are fully committed to delivering it,” Mohindroo stated.
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