India’s Electronics Drive: A Jobs Boom Under the PLI Scheme
India’s push to become a global hub for electronics production hit a major milestone as the Production Linked Incentive (PLI) scheme accelerated job creation and export growth. In just five years, the sector has generated about 1.33 million jobs, with a notable share held by women and first-time workers. The surge in smartphone manufacturing, guided by PLI incentives, underscores a broader strategy to integrate India deeper into global supply chains while expanding domestic value addition.
The PLI Scheme: A Catalyst for Manufacturing Momentum
The PLI scheme offers targeted incentives to electronics manufacturers that meet local sourcing and production benchmarks. By rewarding volume and value addition, it encourages multinational and domestic players to shift more production and procurement activities to India. This has led to multi-year investment plans, plant expansions, and the establishment of new supply chains that support not just smartphones but a wide range of electronics products.
Smartphone Manufacturing: A Central Pillar of Growth
Smartphone assembly and components have emerged as one of the most visible beneficiaries of the PLI program. Companies have expanded assembly lines, upgraded tooling, and adopted advanced manufacturing practices. The result: higher local content, improved quality control, and shorter lead times. As a consequence, India’s share of global smartphone assembly has grown, contributing to a near tenfold rise in electronics exports in some segments over the period.
Export Momentum and Global Reach
The export uplift is perhaps the most tangible benefit of the PLI-driven acceleration. Indian manufacturers are now exporting not only smartphones but also key components and subassemblies. This diversification strengthens external balances and reduces vulnerability to global supply shocks. Partners across Asia, Europe, and the Americas have shown greater appetite for India-made devices and parts, reinforcing a virtuous cycle of investment and trade.
Inclusive Growth: Women and First-Time Workers Enter the Workforce
Employment gains under the PLI umbrella include a significant proportion of women and first-time workers. Training programs, skill development initiatives, and employer-led onboarding efforts have helped prepare a broader workforce for high-precision electronics manufacturing. This inclusive approach aligns with national employment objectives and supports long-term productivity gains for the sector.
Regional and Economic Impact
Beyond job creation, the PLI-driven expansion has reinforced regional development. States hosting electronics clusters and industrial parks have benefited from increased economic activity, tax receipts, and knowledge spillovers. Local suppliers, logistics providers, and service industries have also seen steady demand growth, creating a broader ecosystem that sustains manufacturing capacity and employment.
What Comes Next: Sustaining Momentum and Quality
To maintain the trajectory, policymakers and industry leaders are focusing on three pillars: continuing conducive policy support, strengthening local supply chains, and investing in workforce upskilling. Quality assurance, environmental standards, and consistent benchmarking will be essential to keep India competitive on the global stage. As the ecosystem matures, the smartphone and broader electronics sectors will likely diversify into higher-value products and more complex components, further enhancing export potential.
Conclusion: A PLI-Powered Path to Self-Reliant Electronics
The 1.33 million jobs created under the PLI scheme reflect a decisive shift in India’s electronics strategy. By prioritizing domestic manufacturing, empowering first-time and female workers, and expanding smartphone production and exports, India is advancing toward its goal of a self-reliant, export-led electronics economy.
