Overview: A Jobs Boom Fueled by the PLI Schem
India’s electronics landscape has undergone a dramatic transformation over the past five years, propelled by the Production-Linked Incentive (PLI) scheme. The program has helped the sector surpass expectations, delivering jobs to an estimated 1.33 million people. Among these workers, a notable share are women and first-time entrants to the formal job market, underscoring the scheme’s broader social impact beyond purely economic gains.
How the PLI Scheme Accelerated Smartphone Manufacturing
The PLI scheme provides financial incentives to manufacturers for increasing local output and expanding exports. In the smartphone segment, this has translated into longer supply chains, higher local value addition, and a more robust domestic ecosystem. Indian-based smartphone makers and multinational players alike have expanded capacities, shifted more of their assembly, testing, and component manufacturing to India, and integrated more local suppliers into their networks.
Export Momentum: Exports Near Tenfold Growth
One of the most striking outcomes is the surge in exports. From modest beginnings, Indian smartphone production for export markets has grown at a rapid pace, with shipments of phones and related electronics rising toward a tenfold increase in certain periods. This momentum has helped diversify the country’s export basket, reduce dependency on a few product lines, and position India as a hub for mid-range and premium devices in the global market.
Women and First-Time Workers: A Social Dividend
With the job gains, women have been increasingly represented across manufacturing and ancillary roles, from assembly lines to quality control and logistics. The influx of first-time workers—individuals entering the formal workforce for the first time—signals a broader inclusion drive. These workers gain skills in precision manufacturing, process optimization, and advanced testing methods, elevating India’s overall tech manufacturing capabilities.
Regional Shifts and Investment Flows
The PLI-driven push is not confined to a single state. Investments have spread across several regions, encouraging new fabs, component plants, and regional distribution centers. The policy mix has attracted both domestic players and global OEMs, boosting local employment and creating an ecosystem where suppliers, logistics providers, and training institutes collaborate more closely with manufacturers.
Challenges and the Path Forward
While the trajectory is positive, challenges remain. The sector must continue to scale up skilled labor, ensure quality standards, and navigate global supply chain dynamics. Continued government support—alongside investments in engineering education, vocational training, and R&D—will be crucial to sustaining growth and meeting rising demand for smartphones and other electronics.
Conclusion: A Transformative Chapter for Indian Electronics
The PLI scheme’s impact on India’s electronics industry, especially smartphone manufacturing and exports, reflects a broader strategic shift toward self-reliance and export-led growth. By generating millions of jobs, advancing gender inclusion, and expanding export capabilities, the program has helped redefine India’s standing in the global electronics landscape. As manufacturers continue to scale and innovate, the Make in India narrative is increasingly anchored in tangible, long-term value for workers, communities, and the economy at large.
