"Expanding India's PLI Scheme: A Push Towards Diversified Electronics Manufacturing"

Electronics Industry Body Seeks PLI Scheme Expansion Beyond Semiconductors

In a bid to further boost India’s burgeoning electronics manufacturing sector, the electronics industry body has urged the government to extend the Production Linked Incentive (PLI) scheme to non-semiconductor sectors. The move comes as part of a broader initiative to bolster domestic production and reduce dependence on imports, aligning with the “Make in India” campaign.

The PLI scheme, originally launched to promote semiconductor manufacturing in the country, has been instrumental in attracting major semiconductor players and investments into India. However, the Electronics Industries Association of India (EIAI) believes that expanding the scheme’s scope to include non-semiconductor sectors is essential to fully harness India’s potential in electronics manufacturing.

The EIAI argues that the demand for non-semiconductor electronic products is also substantial and growing rapidly, encompassing products such as consumer electronics, appliances, telecommunications equipment, and more. By extending PLI benefits to these sectors, the government can incentivize local manufacturing and bolster India’s position as a global electronics manufacturing hub.

Key points highlighted by the Electronics Industry Body:

1. Diversification of Electronics Manufacturing: While semiconductor manufacturing is crucial, the broader electronics industry also plays a vital role in the country’s economic growth. By including non-semiconductor sectors under the PLI scheme, India can achieve a more balanced and diversified electronics manufacturing ecosystem.
2. Boosting Local Production: The PLI scheme has already proven successful in attracting investments and encouraging local production in the semiconductor sector. Extending these incentives to other segments of the electronics industry will further reduce India’s dependence on imports and stimulate domestic manufacturing.
3. Global Competitiveness: A robust electronics manufacturing ecosystem is essential for India to compete on a global scale. Encouraging investments and innovation in non-semiconductor sectors can help Indian manufacturers produce high-quality, competitive products that can be exported worldwide.
4. Job Creation: The expansion of the PLI scheme will not only lead to increased manufacturing activities but also create a significant number of jobs across various segments of the electronics industry, contributing to economic growth and employment generation.
5. Tech Innovation: A broader PLI scheme can encourage research and development in non-semiconductor sectors, fostering innovation and technology advancements. This, in turn, can lead to the development of cutting-edge electronic products.

To summarize, the Electronics Industries Association of India (EIAI) believes that extending the PLI scheme to non-semiconductor sectors is a strategic move that can catalyze the growth of India’s electronics manufacturing industry. This expansion aligns with the government’s vision of making India self-reliant in electronics manufacturing, reducing imports, and promoting domestic production. It remains to be seen how the government responds to these suggestions and whether we can expect further diversification of the PLI scheme in the near future.