The scheme targets key components such as batteries, displays, camera modules, and printed circuit boards (PCBs) to enhance domestic supply chains and reduce import dependence, according to media reports.

India’s electronics production has surged over the past six years, reaching $115 billion in 2024, fueled by mobile manufacturing from global giants like Apple and Samsung. The new PLI initiative is set to attract both domestic and foreign investments while creating job opportunities in the manufacturing and allied sectors.

Government sources suggest that joint ventures between Indian firms and Chinese companies integrated into global supply chains could be considered. An inter-ministerial panel, chaired by the Home Ministry, will assess proposals on a case-by-case basis. This shift has encouraged Indian electronics manufacturing services (EMS) firms to explore strategic partnerships with Chinese players.

Dixon Technologies has already partnered with China’s HKC to manufacture display modules, with production set to begin by July-September 2025. The company is also evaluating tie-ups for other critical components, including precision parts, camera modules, and battery packs. Meanwhile, Zetwerk, a $2 billion manufacturing firm, is actively pursuing joint ventures and technology transfers with global component manufacturers, including Chinese firms, and is exploring acquisitions to strengthen its electronics components business.

Also Read | Government Launches PLI Scheme 1.1 to Strengthen Domestic Steel Production

With the Indian government easing its stance on China-linked collaborations, EMS firms are swiftly securing strategic partnerships that could redefine the future of India’s electronics manufacturing landscape.

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