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PLI / component scheme
What it is
A layered incentive stack for electronics. PLI for large-scale electronics targets finished goods; SPECS gives 25% capex support for components; the Electronics Components Manufacturing Scheme, with an outlay raised to around Rs 40,000 cr in Budget 2026-27, targets sub-assemblies and components
In Jan 2026 MeitY approved 22 ECMS proposals attracting projected investment of Rs 41,863 cr
Impact on industries
- Explicitly designed to move India from assembly to component manufacture, which is where value and margin actually sit
- Drawing tier-1 component makers from Japan, Korea and Taiwan, so it builds an ecosystem rather than subsidising individual plants
- Incentives are turnover-linked over fixed periods, so competitiveness after the window closes remains the open question - the same taper risk as other PLI schemes
- Component manufacture is capital-heavy with long qualification cycles, so approved investment converts to production slowly