Manufacturing of equipment and electronics

The foundation for domestic manufacturing of electronics was laid out with the launch of the National Policy on Electronics (NPE) 2012, which aimed to boost domestic electronics production to $400 billion by 2020 and create 28 million jobs in the Electronics System Design and Manufacturing (ESDM) sector. To encourage investments, the Modified Special Incentive Package Scheme (M-SIPS) was introduced in the same year, offering a 20-25% capital subsidy for setting up electronic manufacturing units. Complementing this was the Electronics Manufacturing Clusters (EMC) Scheme 2012, designed to create world-class infrastructure by supporting the establishment of electronics manufacturing clusters across the country. Recognizing the importance of inclusive digital access, the government launched the National Policy on Universal Electronic Accessibility in 2013, ensuring that persons with disabilities could equally participate in the digital economy.  

The Make in India initiative was launched in 2014 as a broad national movement to encourage domestic manufacturing across sectors, including electronics and information technology equipment. To complement this effort, the Digital India and Skill India initiatives were unveiled in 2015, aiming respectively to strengthen digital infrastructure and digitally empower citizens while simultaneously addressing the skill gaps in manufacturing and technology sectors. The National Policy on Skill Development and Entrepreneurship 2015 further reinforced this by laying a framework to nurture a skilled workforce capable of supporting complex manufacturing ecosystems like electronics. 

Recognizing the need for an innovation-driven ecosystem, the Electronics Development Fund (EDF) Policy was also introduced in 2015, creating a fund-of-funds structure to support early-stage electronics and IT startups, foster R&D, and promote indigenous IP creation. The focus on strengthening manufacturing continued with the introduction of the Phased Manufacturing Programme (PMP) in 2017, which systematically increased duties on imported components to incentivize domestic assembly and localization in mobile handset production. 

To consolidate earlier efforts and align them with emerging opportunities, the government rolled out the National Policy on Electronics (NPE) 2019. It reiterated the vision of positioning India as a global ESDM hub with a focus on innovation, skill development, and export promotion. It was followed by the launch of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) in 2020, offering a 25% financial incentive on capital expenditure for setting up or expanding facilities for key electronic components. That same year, the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing was introduced, offering 3–6% incentives on incremental sales of domestically manufactured mobile phones and specified components. 

Building on this, the government also introduced dedicated PLI schemes for adjacent sectors in 2021. The PLI Scheme for Telecom and Networking Products incentivized the domestic production of 4G/5G equipment and core transmission gear to strengthen India’s communications manufacturing base. The PLI Scheme for White Goods, targeting air conditioners and LED lighting, was approved to create a complete component ecosystem for energy-efficient appliances. Similarly, the PLI Scheme for Automobile and Auto Components supported the manufacturing of advanced automotive technologies, including electric and hydrogen-powered vehicles, to enhance competitiveness in the global mobility sector. 

Recognizing the need to strengthen the IT hardware segment, a separate PLI Scheme for IT Hardware was launched in 2023, supporting domestic manufacturing of laptops, tablets, servers, and all-in-one PCs. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem (popularly known as the Semicon India Programme) was announced in 2024 with an ambition to establish semiconductor fabs, display fabs, and advanced packaging units in India through financial support and policy interventions. 

Further to foster next-generation technological innovation, the Digital India futureLABS Initiative was launched in 2024, focusing on research and development in areas like AI, semiconductors, and electronics system design. In 2025, the government approved a new Electronics Components Manufacturing Scheme with an outlay of ₹22,900 crore, targeting the production of critical components like display modules, camera modules, and lithium-ion cells, with an aim to attract investments of ₹59,350 crore and create over 91,000 jobs. 

Complementing these central schemes, several Indian states have launched dedicated electronics manufacturing policies tailored to attract investments, promote infrastructure, and develop skilled ecosystems. States such as Tamil Nadu, Uttar Pradesh, Karnataka, Telangana, and Andhra Pradesh offer capital subsidies, land rebates, and single-window clearance to encourage domestic and foreign manufacturers. Tamil Nadu’s Electronics Hardware Manufacturing Policy focuses on cluster development and EMS promotion, while Uttar Pradesh’s Electronics Policy aims to develop Noida into a mobile and component manufacturing hub. These state-led efforts play a pivotal role in grounding national objectives at the regional level and accelerating India’s emergence as a diversified electronics manufacturing base.