production linked incentive

More than just another incentive program, this PLI scheme represents India’s ambition to climb up the global manufacturing value chain, fostering design-led, quality-driven, resilient manufacturing capabilities.

Samsung is seeking a one-year extension to India's production-linked incentive (PLI) scheme for smartphones after missing targets in the second year. The company aims to secure incentives for a full five years, potentially receiving ₹3,200 crore for its participation.

HP is set to double its manufacturing output in India within the year, driven by the government's production-linked incentive (PLI) scheme for IT hardware. The company aims to expand local production of desktops and laptops, contributing to India's ambition to become a key player in the global value chain.

The government has launched the Electronics Components Manufacturing Scheme (ECMS) with a budget of Rs 23,000 crore to enhance domestic electronics production. The scheme prioritizes firms with strong local design capabilities and quality standards. It aims to increase India's global electronics manufacturing share to 8 per cent and attract significant investments, creating numerous jobs and boosting production value.

While India benefits from iPhone manufacturing due to US-China trade tensions, Apple currently has no plans to move MacBook and iPad production to India. The decision is influenced by limited domestic sales and the complexities of establishing a robust supply chain. However, Apple is exploring expanding its manufacturing base in India signaling a potential shift in strategy.

India's IT hardware PLI scheme is boosting domestic laptop production as global brands partner with Indian manufacturers amid China-US trade tensions. Companies like Asus, MSI and HP are establishing or expanding local manufacturing, attracted by incentives.

HP is expanding its manufacturing presence in India, driven by the government's PLI scheme and a growing domestic consumer base. The company doubled its output last year and plans further increases in desktop and laptop production.

Aurobindo Pharma's Penicillin-G plant in Kakinada, operated by Lyfius Pharma, has temporarily suspended production following a fire on Sunday night. The incident, caused by self-ignition of coal near the coal crusher, damaged ancillary equipment. Operations are expected to be paused for 20-25 days for equipment replacement, but the company anticipates no significant impact on financials due to insurance coverage.

The U.S. reciprocal tariffs on China are set to cause major disruptions to global supply chains, forcing American companies to explore alternative suppliers. Electronics is one of the key sectors for India to gain with India's exports valued at nearly USD 14 Bn.

Apple dramatically increased iPhone exports from India to the US in March 2025, reaching 97.6% of total exports, driven by concerns over potential tariffs on Chinese goods. This shift involves expanding Indian production with manufacturers like Tata Electronics and Foxconn, aiming for a complete transition of US-bound iPhone production from China to India by 2026.

India's economy is projected to grow at 6.5% in FY26, buoyed by lower crude oil prices and controlled inflation, despite global economic headwinds. EY's report suggests strategic measures like anti-dumping policies and diversified crude sourcing to mitigate risks from trade tensions. Continued reforms and investments in technology are crucial for sustained long-term growth.

The government's increasing role as a major buyer of gold and debt, coupled with its investments in capital goods and support for healthcare and software, has proven highly profitable for investors tracking its activities over the past five years

Apple plans to shift iPhone assembly for the U.S. market to India by next year, driven by tariff threats and geopolitical risks. This move aims to produce over 60 million iPhones annually in India by 2026, doubling current output. The shift reflects a broader strategy to diversify away from China, with India's government providing incentives to boost electronics manufacturing.

Gujarat is making a significant comeback in India's textile exports, becoming the second-largest exporter with $5,749 million in 2023-24, closely following Tamil Nadu. Experts believe Gujarat's new textile policy, emphasizing integrated infrastructure and value-added production, could further boost its position.

The bigger fear is a recession in the US, but otherwise, exporters see long-term advantage even in a lean season, especially with a Delhi-Washington trade deal likely & China-US relations deteriorating

India is considering zero-duty imports from the US across various sectors, including those under the PLI scheme, to expedite a bilateral trade agreement and reverse reciprocal tariffs. This offer is contingent on strict rules of origin, requiring 30-40% value addition.

Rahul Gandhi has criticized PM Modi's commitment to tackling unemployment, alleging the abandonment of the 'Employment Linked Incentive' scheme. He accused Modi of favoring big corporations over small businesses. The BJP retaliated, citing significant job creation under Modi's government and a decrease in youth unemployment, while also defending the ELI program and attacking Congress's past record.

India's mobile phone exports surged to over Rs 2 lakh crore in fiscal 2024-25, driven by Apple's iPhone, which accounted for Rs 1.5 lakh crore. The government aims to boost the electronics manufacturing ecosystem with a Rs 22,919 crore incentive scheme, targeting increased value addition and job creation in the sector.

The Indian government is revising its Production-Linked Incentive (PLI) scheme to include broader support for new sectors such as footwear, toys, and textiles. The new approach will address inputs, skilling, and other aspects comprehensively, learning from earlier implementations that faced challenges with dependence on component imports.

Hit by the US-China tariff war, Chinese electronics component manufacturers are reducing prices by up to 5% as Indian companies negotiate new contracts. This could lead to 2-3% savings for Indian manufacturers of fridges, TVs, and smartphones, potentially lowering consumer prices. While India heavily relies on Chinese components, local production incentives and rising import duties are pushing for domestic manufacturing.

Chinese electronics component makers are offering Indian companies price reductions up to 5% amid the US-China trade conflict and decreased American demand. This concession, driven by hefty US tariffs on Chinese goods, could boost Indian manufacturers' profits.

The U.S. aims to regulate foreign competition and encourage domestic manufacturing with these tariffs; and the impact needs to be seen separately for each sector. In the context of automotive sector, for India, these tariffs might also present opportunities.

The US has exempted Indian pharmaceuticals from tariffs amidst President Trump’s broad tariff imposition, recognizing their crucial role in global healthcare. This move reinforces India’s position as a key provider of affordable generic medicines. Leaders highlight the strategic importance of the bilateral trade relationship, with the exemption offering India a chance to enhance its pharmaceutical sector.

Mobile phone manufacturers like Foxconn and the Tata group have urged the Indian government to reduce import duties from the US to 0%, fearing business loss to China and Vietnam if reciprocal tariffs are imposed. The companies emphasize an urgent bilateral agreement with the US, highlighting the potential shift in production locations if tariffs increase.