India’s electronics manufacturing sector—particularly mobile phone production—has emerged as a standout performer under the government’s Production Linked Incentive (PLI) scheme, with output surging 146% over four years, according to data released by CareEdge Ratings.
Mobile phone manufacturing production rose from Rs 2.13 lakh crore in FY21 to Rs 5.45 lakh crore in FY25, driven largely by strong foreign direct investment inflows. The sector attracted nearly USD 4 billion in FDI, of which around 70% flowed to companies benefiting from the PLI scheme, the rating agency said.
Despite the robust growth in production, CareEdge highlighted a relatively slow pace of incentive disbursements. While the total budgetary outlay for the PLI scheme across 14 sectors stands at Rs 1.97 lakh crore, cumulative disbursements till September 2025 amounted to Rs 23,946 crore—just 12% of the total envisaged incentives.
However, the pace of payouts has gained momentum in recent years. Incentive disbursements rose from Rs 2,968 crore in FY23 to Rs 6,753 crore in FY24, before reaching a record Rs 10,112 crore in FY25. For FY26, disbursements worth Rs 19,742 crore are expected, with Rs 4,113 crore already released in the first half of the fiscal year, indicating a strong pipeline.
CareEdge noted that despite a slow initial rollout, the scheme has delivered tangible results, with cumulative investments of around Rs 2 lakh crore and incremental production exceeding Rs 18.7 lakh crore as of September 2025.
Large-scale electronics manufacturing remains the single largest beneficiary under the PLI scheme, with an allocation of Rs 38,645 crore. The automobiles and auto components sector follows with Rs 25,938 crore, reflecting the government’s focus on strengthening domestic manufacturing and supply chains.
Clean energy and electric mobility are also key priorities, with solar photovoltaic (PV) modules allocated Rs 24,000 crore and advanced chemistry cell (ACC) batteries receiving Rs 18,100 crore. The IT hardware sector has been allotted Rs 17,000 crore.
Other significant allocations include Rs 15,000 crore for pharmaceutical drugs, Rs 12,195 crore for telecom, Rs 10,900 crore for food products, and Rs 10,683 crore for textiles. Traditional manufacturing sectors such as specialty steel and white goods have received Rs 6,322 crore and Rs 6,238 crore respectively, while medical devices have been allocated Rs 3,420 crore. Drone components, a relatively new entrant under the PLI framework, have been allotted Rs 120 crore.
Reinforcing the sector’s growth trajectory, Union Minister for Electronics and Information Technology Ashwini Vaishnaw recently said India has witnessed a six-fold increase in electronics production and an eight-fold rise in exports over the past 11 years. Electronic goods production increased from Rs 1.9 lakh crore in 2014–15 to Rs 11.3 lakh crore in 2024–25, while exports grew from Rs 0.38 lakh crore to Rs 3.3 lakh crore during the same period.
