By Aditya Agarwal 
Electronics becomes the largest PLI beneficiary
India’s electronics manufacturing programme has reached another significant milestone.
Large-scale electronics manufacturing companies have received ₹19,090.98 crore in incentives under the Production Linked Incentive programme through June 2026.
At the same time, the sector has attracted ₹20,580.20 crore in investment.
The figures come from data released by the Department for Promotion of Industry and Internal Trade and reported on September 27–28. (NDTV Profit)
The electronics sector has received the largest incentive amount among the 14 PLI schemes launched by the government.
That makes the sector an important test of India’s industrial policy.
The objective was straightforward.
India wanted to expand domestic manufacturing, increase exports, attract investment and reduce dependence on imported electronics.
The latest numbers show that substantial manufacturing capacity has been created.
However, the bigger question is whether India can move from assembly toward deeper electronics value chains.
The smartphone industry is at the centre
The large-scale electronics manufacturing scheme was introduced in 2020.
It was designed primarily to build India’s mobile-phone manufacturing ecosystem.
A total of 32 companies were approved as beneficiaries under the scheme.
The programme was originally designed to operate for five years. It was subsequently extended through the 2025–26 financial year. (NDTV Profit)
The transformation is visible in India’s smartphone trade.
Smartphone exports reached approximately $30 billion in 2025–26, compared with $5.5 billion in 2021–22, according to figures cited in the latest reports. (NDTV Profit)
That is a substantial increase.
Moreover, India has strengthened its position as a major global mobile-phone production base.
Large manufacturers and their suppliers have expanded production capacity.
Export-oriented facilities have also become increasingly important.
Incentives are only one part of the equation
The PLI model links incentives to incremental production and sales.
Therefore, companies do not receive the entire benefit simply for establishing a factory.
They must meet specified performance requirements.
This structure attempts to connect government expenditure with actual industrial output.
Across all 14 PLI programmes, the government had disbursed ₹36,754 crore by June 30, 2026.
The schemes together carry an approved outlay of approximately ₹1.91 lakh crore. (The Times of India)
Electronics accounts for more than half of the total PLI payouts so far.
Pharmaceuticals followed with ₹6,662 crore, while food products received ₹3,271.44 crore and automobiles and auto components received ₹3,174.15 crore. (NDTV Profit)
That distribution shows how strongly electronics has performed within the programme.
The next challenge is deeper localisation
India’s success in smartphone manufacturing does not automatically mean that the entire supply chain has moved into the country.
High-value components can still come from international suppliers.
Semiconductors, displays, advanced camera modules, specialised materials and precision components require deeper industrial capabilities.
Consequently, the next phase of India’s electronics strategy will likely focus on supply-chain depth.
This is where the semiconductor ecosystem becomes relevant.
A phone assembly plant can create jobs and exports.
However, a domestic ecosystem for components can create a much broader industrial base.
It can also reduce exposure to global supply disruptions.
Exports are becoming more important
The rise in smartphone exports changes the economics of the industry.
India is no longer producing only for domestic consumers.
Manufacturers can use the country as an export base.
That gives companies access to a much larger market.
However, global manufacturing is intensely competitive.
Vietnam, China and other Asian economies already have deep electronics supply chains.
Therefore, India needs to compete on more than labour costs.
Logistics, electricity, component availability, engineering talent and manufacturing quality all matter.
Speed also matters.
Global electronics products have short product cycles.
Factories need to adapt quickly when new models are introduced.
What the numbers mean for Indian industry
The latest PLI figures suggest that India’s electronics manufacturing strategy has moved beyond the policy-announcement stage.
Money has been disbursed.
Companies have invested.
Production has expanded.
Exports have increased.
Nevertheless, the next stage will be harder.
India needs to build a larger network of component manufacturers.
It needs stronger research and engineering capabilities.
It also needs to increase the domestic share of higher-value electronics.
That transition could determine whether India becomes primarily a large assembly hub or a broader electronics manufacturing ecosystem.
For businesses, the opportunity is therefore expanding.
Component suppliers, logistics providers, tooling companies and specialised manufacturers can all benefit from a larger industrial base.
For policymakers, meanwhile, the focus will increasingly shift from attracting factories to deepening supply chains.
The first phase established scale.
The next phase must establish depth.
Tags: India electronics manufacturing, PLI, smartphone exports, Made in India, electronics industry, manufacturing, industrial policy
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