The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing provided financial incentives to boost domestic manufacturing and attract investment in the electronics sector. The Ministry of Electronics and Information Technology (MeitY) launched this scheme in 2020 to support mobile phone production and electronic component manufacturing. As of August 2026, the First Round of the scheme is scheduled to end on March 31, 2026, and the application window remains closed.
Budget 2026 did not announce any extension or renewal of the Mobile PLI scheme. Finance Minister Nirmala Sitharaman's speech kept silent on rolling out a Mobile PLI 2.0 despite industry demands. Allocations for MeitY-led PLI schemes covering mobiles and IT hardware have dropped sharply to ₹1,527 crore in Budget Estimate FY27 from ₹9,000 crore in FY26. Instead, the government has shifted policy focus toward the Electronics Component Manufacturing Scheme (ECMS), raising its outlay to ₹40,000 crore in FY27 — a jump of around 75 percent.
Operation of Production Linked Incentive Scheme for Large Scale Electronics Manufacturing
The scheme offered performance-linked incentives based on incremental sales of goods manufactured in India compared to a base year. Incentives were disbursed only after firms achieved verified production and sales targets. A Project Management Agency handled the application, verification, and monitoring process to maintain clarity throughout the programme. Major companies including Foxconn, Tata Electronics, Pegatron, Samsung, and Dixon Technologies benefited under this scheme, primarily as contract manufacturers for global brands like Apple.
The First Round covered mobile phones and specified electronic components with a five-year tenure from FY21 to FY25, later extended by one year to FY26. A Second Round was approved focusing only on specified electronic components such as SMT components, discrete semiconductor devices, passive components, printed circuit boards, sensors, System in Package units, micro/nano-electronic components, and Assembly Testing Marking and Packaging (ATMP) units. The Second Round had a four-year tenure with the base year set as FY 2019-20. However, applications for the Second Round are also currently closed.
| Detail | Information |
|---|---|
| Scheme Name | Production Linked Incentive Scheme for Large Scale Electronics Manufacturing |
| Launched By | Ministry of Electronics and Information Technology (MeitY) |
| Level | Central Government |
| Beneficiaries | Companies engaged in electronics manufacturing |
| Benefit Type | Financial incentive on incremental sales (4-6% for most segments) |
| Tenure | First Round: 5 years (extended to FY26); Second Round: 4 years |
| Status | Application window closed; First Round ends March 2026 |
| Nodal Ministry | Ministry of Electronics and Information Technology |
| Official Portal | pli.ifciltd.com |
Benefits
The scheme offered several advantages to participating companies during its operation:
- Provided performance-based incentives linked to incremental production and sales over the base year.
- Promoted large-scale infrastructure investment in the electronics manufacturing sector across India.
- Strengthened India's industrial manufacturing base and increased domestic value addition in electronics.
- Reduced reliance on imports by encouraging domestic manufacturing of mobile phones and components.
- Helped integrate India into the global electronics supply chain, attracting major multinational companies.
- Attracted significant foreign direct investment, particularly from Apple's supply chain partners.
Eligibility
Companies that participated had to meet the following criteria:
- Must be engaged in manufacturing within the notified target segments such as mobile phones or specified electronic components.
- Must meet defined consolidated global manufacturing revenue thresholds in the base year.
- Must satisfy minimum annual thresholds for incremental investment and sales to qualify for each year's incentive.
- Compliance was required every year to claim that specific year's incentive payment.
- Only sales of goods manufactured under target segments qualified for incentive calculation.
- Eligibility for this scheme did not disqualify a company from participating in other government programmes.
Documents Required
Applicants needed to submit the following documents during the application process:
- Certificate of Incorporation and Company CIN details.
- Audited financial statements for previous years.
- Proof of global manufacturing revenue for the base year.
- Detailed projections for incremental investment and expected sales.
- Detailed Project Report (DPR) outlining the manufacturing plan.
- Board resolution authorizing participation in the scheme.
- Signed eligibility declarations and compliance certificates.
References
FAQ's
What happened to the PLI Scheme for Electronics Manufacturing?
The First Round of the scheme ended on March 31, 2026. Budget 2026 did not announce any extension or renewal (Mobile PLI 2.0). The application window is now closed.
Why was the scheme not renewed?
The government shifted its focus to the Electronics Component Manufacturing Scheme (ECMS) with a larger allocation of ₹40,000 crore instead of continuing the mobile-focused PLI scheme.
Which companies benefited from this scheme?
Major contract manufacturers including Foxconn, Tata Electronics, Pegatron, Samsung, and Dixon Technologies received incentives under the scheme, largely for manufacturing iPhones and other electronics in India.
What are the target segments covered?
The First Round covered mobile phones and specified electronic components. The Second Round focused only on electronic components such as SMT components, semiconductors, passive components, PCBs, sensors, and ATMP units.
How was the incentive calculated?
Incentives ranged from 4 to 6 percent on incremental sales of manufactured goods in India over a defined base year, subject to meeting investment and production thresholds.
Can companies still apply for the scheme?
No, the application window is closed. Eligible companies who applied during the open window can continue to claim incentives as per their approval letters.