Next Phase Of Electronics PLI Scheme Under Consultation: Ashwini Vaishnaw

(MENAFN- KNN India) New Delhi, Feb 4 (KNN) The government is in discussions with mobile phone manufacturers, IT firms and other electronics companies on the next phase of the production-linked incentive (PLI) scheme, Union Electronics and IT Minister Ashwini Vaishnaw said on Tuesday.

He said the proposals would be placed before the Cabinet once consultations are finalised.

In an interview with PTI, Vaishnaw said the government remains engaged with manufacturers, even as the existing mobile PLI scheme is set to end in March and was not explicitly mentioned in the Union Budget for 2026–27.

Budget Reforms to Boost Jobs

The minister said recent budget measures, including a Rs 40,000-crore electronics component manufacturing scheme and tax holidays for AI data centres, are expected to significantly expand employment across electronics manufacturing, IT services, artificial intelligence and global capability centres (GCCs).

At present, these sectors together employ over one crore people. Vaishnaw said he would not be surprised if employment rises to around 1.5 crore within the next two years, driven by the setting up of new component manufacturing units.

Electronics Manufacturing Gains Momentum

Vaishnaw said the electronics component manufacturing scheme has already approved 46 units, with many more proposals in the pipeline. The Ministry of Electronics and IT has cleared applications involving investments of Rs 54,567 crore, with the potential to generate about 51,000 direct jobs.

He noted that nearly 260 applications have been received so far, far exceeding initial expectations.

Electronics manufacturing in India has expanded six-fold over the past decade, while electronics exports have grown eight times, making electronics the country's third-largest export category. The sector currently employs around 25 lakh people.

Policy Support for Industry and GCCs

The minister said measures such as a five-year income tax exemption for foreign suppliers of capital equipment in bonded zones would support the growth of the electronics industry.

Budget proposals to raise safe harbour limits to Rs 2,000 crore and unify IT tax provisions are expected to reduce compliance burdens and litigation risks for software exporters and GCCs.

He added that initiatives such as ISM 2.0 and cloud-related tax incentives underline India's push to attract global digital infrastructure investments.

(KNN Bureau)

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