New Delhi: India’s electronics manufacturing sector has recorded blistering growth under the Centre’s flagship Performance Linked Incentive (PLI) scheme, with production leaping 146% over four years, making it the top-performing segment among 14 sectors covered by the programme, according to data compiled by CareEdge Ratings.
The report shows electronics production — led largely by mobile phones — expanded from ₹2.13 lakh crore in FY21 to ₹5.45 lakh crore in FY25, reflecting a dramatic scale-up of domestic manufacturing capacity and demand. Growth has been buoyed by around USD 4 billion in foreign direct investment, with approximately 70% of those inflows going to PLI scheme beneficiaries.
Despite the robust production gains, actual incentive disbursements under the PLI programme have lagged behind total allocations. Of the ₹1.97 lakh crore earmarked for the scheme’s 14 sectors, only about ₹23,946 crore had been disbursed by September 2025 — roughly 12% of the total envisaged payout. However, annual payouts are rising, with ₹10,112 crore distributed in FY25 and further disbursements projected in FY26.
The electronics sector’s strong performance underscores the government’s push to deepen local manufacturing and reduce import dependence, aligning with broader ‘Make in India’ and export-led growth strategies. Cumulative investment under the scheme stands at about ₹2 lakh crore, with incremental production exceeding ₹18.7 lakh crore through September 2025.
Among other sectors supported under the PLI umbrella, large-scale electronics manufacturing receives the largest allocation — ₹38,645 crore — followed by automobiles and auto components, solar photovoltaic modules, and advanced chemistry cell batteries, reflecting the government’s focus on strategic industries.