The government is in talks with mobile phone makers, IT companies, & electronics manufacturers to shape the next phase of the Production Linked Incentive (PLI) scheme, Union Minister for Electronics and IT Ashwini Vaishnaw said, adding that the proposal will be taken to the Cabinet once consultations are concluded.
Speaking in an interview, Vaishnaw said recent Budget announcements, including ₹40,000-crore electronics components scheme & tax incentives for AI data centres–are expected to significantly boost employment across electronics manufacturing, artificial intelligence and Global Capability Centres (GCCs). These measures, he said, could take overall tech-sector employment beyond the current base of over one crore jobs.
Addressing concerns around the mobile PLI scheme, which is set to expire in March and was not explicitly extended in the FY27 Budget, the minister said discussions with industry stakeholders are ongoing. Similar engagement is also taking place in areas such as semiconductors and IT hardware manufacturing. “Once the framework is finalised, it will be placed before the Cabinet for approval,” he said.
Vaishnaw linked the policy push to the broader vision outlined in the Union Budget 2026–27 for achieving the goals of ‘Viksit Bharat 2047’, with a focus on building resilience, reducing import dependence and driving job-led growth.
On the electronics components scheme, the minister said approvals have already been granted to 46 manufacturing units, with committed investments of ₹54,567 crore and an estimated creation of 51,000 direct jobs. The response from industry has been strong, with nearly 260 applications received so far. Additional policy steps such as five-year tax exemptions for foreign suppliers of capital equipment operating in bonded zones are expected to further strengthen the ecosystem. Measures like higher safe harbour thresholds and a simplified tax regime for IT exporters and GCCs are also aimed at easing compliance.
Vaishnaw said employment in the technology sector could reach 1.5 crore within the next two years, driven largely by the expansion of component manufacturing. Over the past decade, India’s electronics production has increased six-fold, while exports have grown eight times, making electronics the country’s third-largest export category. Current employment in the sector stands at around 25 lakh and is projected to rise steadily.
With PLI 2.0 and allied incentives taking shape, can India convert this manufacturing push into sustained high-quality jobs and global leadership in electronics and semiconductors?
Also read: Viksit Workforce for a Viksit Bharat
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