The India Electronics and Semiconductor Association (IESA) has welcomed the Government of India’s newly approved Production Linked Incentive (PLI) 2.0, formally known as the Mobile Phone Manufacturing Scheme (MPMS), describing it as a major step towards strengthening the country’s electronics manufacturing ecosystem. The industry body said the scheme, approved with an outlay of ₹62,500 crore over five years, will help India move closer to its goal of becoming a US$400 billion electronics manufacturing economy by 2030.
IESA said the first phase of the PLI scheme has been one of India’s most successful industrial policy initiatives. Since its launch, the programme has significantly transformed the country’s electronics manufacturing landscape. Mobile phone manufacturing has increased nearly 28 times, while exports have grown more than eight-fold, making India the world’s second-largest mobile phone manufacturer and an emerging global exporter of smartphones.
The association noted that the first phase of the scheme attracted investments exceeding ₹17,500 crore, generated production worth more than ₹11 lakh crore, and created over 1.75 lakh direct jobs. According to IESA, these achievements have laid a strong foundation for India’s electronics manufacturing ambitions and demonstrated the effectiveness of policy-driven industrial growth.
IESA highlighted its continued collaboration with the Ministry of Electronics and Information Technology (MeitY), the India Semiconductor Mission (ISM), state governments and industry stakeholders. Through policy advocacy, industry consultations and investment promotion, the association has supported the growth of India’s electronics and semiconductor ecosystem.
Commenting on the announcement, Ashok Chandak, President of IESA and SEMI India, said the first PLI scheme fundamentally reshaped India’s electronics manufacturing sector by creating large-scale production capacity, attracting global companies and generating employment. He said the new Mobile Phone Manufacturing Scheme arrives at the right time to sustain this momentum and is expected to nearly double cumulative production to around ₹39 lakh crore, increase cumulative exports to nearly ₹15 lakh crore, and create an additional 60,000 direct jobs.
Chandak also emphasised that the next phase of India’s electronics journey must focus on increasing domestic value addition. While domestic value addition has already improved from around 8–10% to nearly 20%, he said the combined implementation of PLI 2.0, the Electronics Components Manufacturing Scheme (ECMS), the Semicon India Programme, the Electronics Manufacturing Clusters (EMC) Scheme, and the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme has the potential to increase domestic value addition to around 40% in the coming years. He said these initiatives will encourage component manufacturing, semiconductor packaging, indigenous product development, advanced manufacturing technologies and design-led innovation.
According to IESA, the new PLI scheme will encourage investments across the entire electronics value chain, including consumer electronics, industrial electronics, telecom equipment, automotive electronics, medical electronics, strategic electronics and emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), Industry 4.0 and edge computing.
IESA Chairperson Navin Bishnoi said the convergence of multiple government initiatives marks the beginning of a new phase for India’s electronics industry. He explained that while the Semicon India Programme is establishing semiconductor manufacturing capabilities, ECMS will accelerate localisation of electronic components, EMC will strengthen world-class manufacturing infrastructure, and the RDI Scheme will promote indigenous technology development and product innovation. Together with the new MPMS, these initiatives create a comprehensive roadmap spanning design, intellectual property creation, semiconductor manufacturing, component production and exports.
The association also stressed that India’s next phase of growth should focus on building globally competitive technology companies by strengthening product design, intellectual property creation, deep-tech startups, skilled talent and indigenous innovation. IESA reaffirmed its commitment to supporting this transformation through policy advocacy, international partnerships, startup enablement, talent development and industry platforms such as the IESA Vision Summit and SEMICON India.
IESA believes that rising demand driven by artificial intelligence, digitalisation, electric mobility, industrial automation, telecommunications and smart infrastructure will create significant opportunities for the country’s electronics industry. It said the renewed policy support will strengthen investor confidence, attract global supply chains, generate high-value employment and reinforce India’s position as a trusted global hub for electronics design, manufacturing and innovation.
Concluding, Chandak said India is no longer merely a large consumer market for electronics but is rapidly emerging as a global centre for design, manufacturing and innovation. He added that the new PLI 2.0 scheme, supported by ECMS, the Semicon India Programme, EMC and the RDI Scheme, provides the policy continuity needed to strengthen Atmanirbhar Bharat, significantly increase domestic value addition and accelerate India’s journey towards a US$400 billion electronics manufacturing economy by 2030.
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