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Tag: PLI Scheme

  • Government Reopens PLI Scheme Applications for White Goods Manufacturers

    According to an official announcement issued on 14 September, the government has extended the application period for the PLI plan for white goods (LED lights and air conditioners) by 30 days. From September 15 to October 14, the window will remain accessible.

    As per the Ministry of Commerce and Industry, the PLI (production-linked incentive) Scheme for White Goods is reopening its application window because the industry is eager to increase its investment under the programme. After the application window closes, no more applications will be accepted.

    Eligibility

    The ministry stated that, subject to specific requirements, both new applicants and current scheme beneficiaries who wish to increase their investment by moving to a higher target segment or their group companies applying under a different target segment would be eligible to apply in order to prevent any discrimination.

    The incentives will only be available to applicants for the balance of the programme’s duration. Only in the case of new applicants and beneficiaries choosing GP-2 (gestation period) in order to transition to a higher investment category would the applicant accepted in the proposed fourth round be eligible for PLI for a maximum of two years.

    Investment & Benefits

    Under the PLI initiative, 83 applicants with a total committed investment of INR 10,406 crore have been chosen as beneficiaries thus far. According to the statement, the investments would result in the production of air conditioner and LED light components along the whole value chain, including those that are currently not produced in sufficient quantities in India.

    The plan was approved by the Union Cabinet on April 7, 2021. This programme, which will cost INR 6,238 crore, will be executed over seven years, from FY 2021-22 to FY 2028-29.

    In response to Prime Minister Narendra Modi’s clear call for “Atmanirbhar Bharat”, which aims to put manufacturing at the forefront and highlight its importance in propelling India’s growth and job creation, the Union Cabinet approved the PLI Scheme for White Goods on April 7, 2021, for the production of parts and sub-assemblies of air conditioners (ACs) and LED lights. This scheme, which will cost INR 6,238 crore, will be executed over seven years, from FY 2021-22 to FY 2028-29.

    Quick Shots

    •Applies to LED lights and air conditioners
    manufacturers.

    •Both new applicants and existing beneficiaries can
    apply.

    •New applicants choosing GP-2 (gestation period) can
    avail benefits for up to 2 years.

    •So far, 83 beneficiaries committed INR 10,406 crore
    investments under the scheme.

  • Samsung Begins Laptop Manufacturing in India Under ‘Make in India’ Push

    Samsung, a key player in the Korean electronics industry, has now extended its “Make in India” campaign by producing laptops domestically in India, following the launch of smartphones.

    Samsung’s Noida Facility: Expanding From Smartphones to Laptops

    According to a Times Now article, the laptops are put together at Samsung’s Greater Noida factory, where the company also produces wearable technology, smartphones, tablets, and feature phones.

    The article further reveals that Samsung’s first shipment of locally produced laptops has already reached the Indian market, and more production expansion is planned. Samsung is increasing its production capacity with the support of the “Make in India” campaign.

    Meeting With IT Minister Signals Bigger Plans for India

    The Korean electronics giant aims to begin producing additional products in India, as reported by PTI. This comes shortly after IT Minister Ashwini Vaishnaw met with Samsung Southwest Asia President and Chief Executive JB Park and Samsung Southwest Asia Corporate Vice President SP Chun.

    The PTI report also noted that the meeting indicated the company’s increased commitment to fortifying its relationship with India and supporting the government’s drive for domestic production.

    India’s Growing Laptop Market and Samsung’s Opportunity

    Brands like Dell, HP, ASUS, and Lenovo dominate the laptop market, whereas Samsung has not yet reached a wider audience of consumers. In September 2023, Samsung’s entry into the Indian laptop market began to generate excitement. According to reports, the company’s Noida facility would include a dedicated laptop unit that could produce between 60,000 and 70,000 units a year.

    Government’s Push: Import Restrictions and PLI Incentives

    With the goal of exporting entirely domestic cellphones and electrical gadgets, from semiconductors to completed goods, the “Make In India” campaign seeks to reduce India’s dependency on imports. Alongside this campaign, the government planned to impose import limits on laptops, tablets, and personal computers beginning in January of this year in an effort to pressure multinational giants like Apple, Dell, and Lenovo to increase their domestic manufacturing in the $8–10 billion sector.

    Lenovo India MD Shailendra Katyal had stated that the company plans to treble local output to 12 million laptops and smartphones in FY25 from 6.4 million units in FY24, riding on the Centre’s “Make in India” push. In FY25, the business plans to treble local production from 6.4 million laptops and cellphones to 12 million units.

    India’s Electronics Manufacturing Boom: Competitors & Investments

    India’s Laptop Assembly Changes Gears Government initiatives, especially the production-linked incentive (PLI) programme, are encouraging several businesses to invest in new or expanded laptop manufacturing facilities in India.

    For example, Dixon Technologies, based in Noida, signed an agreement with the Tamil Nadu government in April to invest INR 1,000 Cr in the construction of a laptop and personal computer manufacturing facility close to Chennai.

    Tata Electronics was reportedly in discussions with companies like Microsoft, Dell, and HP, among others, to expand its capabilities and position itself as a fully integrated electronics producer, according to reports from last December.

    Supported by EY’s forecast that the domestic electronics manufacturing services sector might grow into an $80 billion market by 2027, the consumer electronics sector in India has been gaining traction in the startup ecosystem.

    Quick
    Shots

    •Samsung begins domestic laptop
    production under the ‘Make in India’ initiative.

    •Assembly at Greater Noida facility,
    which already makes smartphones, tablets, wearables & feature phones.

    •IT Minister Ashwini Vaishnaw met
    Samsung executives JB Park & SP Chun, signaling stronger India
    commitment.

    •Production-linked incentive scheme
    driving investments in electronics assembly.

  • Scheme to Boost Electronic Component Production Draws 70 Applications

    According to reports, the government has received 70 applications for its project to manufacture electronics components worth INR 22,919 Cr. The development was confirmed by Union Minister Ashwini Vaishnaw, who also noted that small and medium-sized businesses make up the majority of the applications.

    Vaishnaw informed a news source that the plan to manufacture electronics components has been well appreciated. About 70 applications have been received in the 15 days after the application was opened.

    This production-linked incentive (PLI) programme for non-semiconductor electronics components was approved by the union cabinet in March. The plan is to draw in INR 59,350 Cr in investment, which will lead to INR 4,56,500 Cr in output and the creation of 91,600 new direct jobs in addition to numerous indirect positions. With a one-year gestation period, the system has a six-year duration.

    A portion of the incentive’s payout is also correlated with meeting employment goals. The government stated when the plan was approved that it offers Indian manufacturers unique incentives designed to help them overcome particular obstacles for different types of parts and sub-assemblies, enabling them to develop technological capabilities and realise economies of scale.

    Scheme will Benefit Various Sector

    The initiative is expected to help industries like telecommunications, consumer electronics, automotive, and medical devices. Vaishnaw also announced last month that the scheme’s online portal would soon be activated and that the guidelines had been finalised.

    Global manufacturers Foxconn, Tata Electronics, Zetwerk, and Dixon are reportedly considering investments in India via the PLI scheme, despite the fact that the initiative’s investors have not been made public. These multinational corporations are planning their manufacturing hubs in collaboration with various states.

    For example, Foxconn, Apple’s biggest contract manufacturer, has already established a display module assembly facility in Tamil Nadu and begun conducting trial runs. Additionally, the “Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)” was introduced a few weeks ago by Tamil Nadu Chief Minister MK Stalin. This plan seeks to create 60,000 jobs in the state and draw in investments of INR 30,000 Cr.

    Gujarat and UP Scaling Up Efforts to Lead the Race

    According to various media reports, Gujarat and Uttar Pradesh are also vying to become major centres for the production of electronics. Uttar Pradesh is working on a draft policy that might be finished in a few weeks, while Gujarat has presented a draft policy to encourage and expand the manufacturing of electronics components.

    Finance Minister Nirmala Sitharaman stated during her 2025–2026 budget speech that the government is prepared to provide the local electronics equipment industry with a much-needed boost. India produced electronics worth INR 9.52 Lakh Cr in FY24 compared to INR 1.90 Lakh Cr in FY15, according to the Economic Survey 2024–25.

  • In India, Apple Assembles iPhones Valued About $22 billion

    According to a media report, Apple has significantly changed its global supply chain strategy by increasing its iPhone production in India to an all-time high. Now the tech giant assembles smartphones valued at $22 billion in India. The action is a reflection of Apple’s increased efforts to expand its manufacturing presence in India and lessen its dependency on China. About 20% of all iPhones made worldwide are currently made in India, where production of the device increased by about 60% in the past year, according to the report. This effort follows India’s Production-Linked Incentive (PLI) program, which has been instrumental in drawing in large international electronics firms. India’s IT and Electronics Minister Ashwini Vaishnaw disclosed earlier this week that during the fiscal year that ended in March 2025, Apple exported iPhones valued at INR 1.5 trillion, or roughly $17.4 billion. Three iPhone assembly facilities are now run by Apple in India: two in Tamil Nadu and one in Karnataka. Two of the Tamil Nadu plants are run by the Tata Group, while the other one is run by the Taiwanese behemoth Foxconn.

    Apple Urging Suppliers to Establish Units in India

    China, Japan, and Taiwan vendors have been actively encouraged by Apple to set up production facilities in India. Important component producers have already started production in the nation, including Foxlink (cables), Sunwoda (battery packs), and Aequs (enclosures). There has also been a notable increase in local content in Apple’s iPhones manufactured in India. Just 5–8% of the parts in different models were sourced locally when Apple started manufacturing in India in 2020. That percentage has now increased to about 20%. According to reports, Apple has branched out beyond the basic iPhone models, indicating a growing trust in its Indian business. According to Bloomberg, the company has begun constructing the more expensive iPhone 16 Pro models in India, although it first concentrated on assembling the entry-level iPhone 15 model.

    All Developments Favouring India

    Additionally, the spike in iPhone exports from India seems to be well-timed in relation to recent trade developments in the United States. As per various media reports, Apple’s exports to the United States from India have increased significantly since the Trump administration imposed high tariffs on Chinese goods. In order to deal with the new tariff environment, Apple is anticipated to give its India supply chain top priority for iPhone shipments headed to the United States. The Trump administration declared on 12 April that laptops, smartphones, and other important equipment will be temporarily spared from the reciprocal duties. As a result, iPhones manufactured in India will not be subject to additional taxes for the time being, while iPhones from China will also be subject to a 20% tariff rate, which is much less than the entire 145% that would otherwise be applicable.

  • E Scooter S1 X Gets Domestic Value Addition Certification for PLI Scheme

    To participate in the Production Linked Incentive (PLI) programme for vehicles and auto parts, Ola Electric’s S1 X escooter models (3 kWh and 4 kWh) have earned the domestic value addition certification (DVA).

    According to a media report, the business has announced that their escooters have achieved the 50% localisation requirement set by the Ministry of Heavy Industries.

    The electric scooter manufacturer that went public earlier this month has already gotten DVA certification for its S1 air model in January and its S1 pro model in March.

    Ola S1 Pro supposedly makes the most money for the company. Certification is granted by the Automative Research Association of India (ARAI).

    Incentives under the PLI Scheme can be claimed by Ola for a maximum of five consecutive years beginning in the fiscal year 2024. The percentage of product sales that goes towards incentives will range from thirteen percent to eighteen percent.

    How This Development Will Help in Further Expansion?

    According to a representative for Ola, who was quoted in a media report, the scooters S1 X 3 kWh and S1 X 4 kWh collectively contribute to approximately half of the total revenue that Ola generates. According to him, the company will be able to further improve its bottom line now that the PLI has been implemented by the corporation.

    In addition, the spokesperson stated that the fact that Ola has received PLI certification for both its luxury and mass-market goods is evidence of the company’s vertically integrated manufacturing strength. This success is a key step forward in the development of India’s electric vehicle vision.

    Over the last week, Ola presented its electric motorcycle portfolio, which is referred to as “The Roadster series.”

    Rebranding of Ola Cab

    The rebranding of Ola Cabs to Ola Consumer was revealed by Bhavish Aggarwal, the CEO of Ola, during the annual event known as “Sankalp,” which is held by the Ola group.

    Rebranding will allow the company to provide a wide variety of consumer services, including eCommerce, financial services, ride-sharing services, and other similar offerings, according to the company’s statement.

    During the fiscal year 24 (FY24), Ola Electric reported a net loss of INR 1,584.4 Cr, despite having an operational income of INR 5,009.8 Cr.

    As of the June quarter of the fiscal year 25 (FY25), Ola Electric’s consolidated net loss increased to INR 347 crore, up from INR 267 crore. In the same quarter, the company’s operating revenue reached INR 1,644 crore, representing a year-on-year rise of 32%.

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  • Revival of India’s Toy Industry

    A joint report by industry bodies FICCI and KPMG had estimated that the Indian toy industry was worth USD 1 billion in FY 2019-2020 which would double by FY 2024-2025 to reach USD 2 billion. These figures are low compared to the global worth of the toy industry which stands at a whopping 120 billion.

    This is a massive change from a decade ago when the Indian market was flooded with imported toys with eight out of ten toys being predominantly imported from China. The import worth of toys in the year 2014 was USD 3.28 billion and USD 19.36 billion in 2015 – six times higher than the export. The Indian toy industry was ailing due to a lack of investment and technology as well as competition from cheap imported toys. Also, traditional toys were long forgotten and the local industry was in shambles with 40% of manufacturing units closing permanently and a further 20% on the brink of shutting down.

    Approximately three years ago, the industry turned on its head as it grew to become a net foreign exchange earner. Exports increased by 61.4%  from USD 202 million in FY 2018-2019 to USD 326 million in FY 2021-2022 while imports decreased by 70% from USD 371 million to USD 110 million during the same period.

    What Changed?
    Conclusion

    What Changed?

    The global disaster of the covid-19 pandemic caused a severe disruption in supply in the year 2020. This became a blessing in disguise in a combination with rising governmental support for the dwindling toy industry.

    Introducing New Policies

    The Indian government introduced two key initiatives. February 2020 saw an increase in basic customs duty from 20% to 60%. Then a year later, in January 2021, it issued a Toys Quality Control Order, which made it mandatory for all toy manufacturers, domestic and international, to get a Bureau of Indian Standards (BIS) certification for selling toys in the Indian market. As per the specifications, all toys for children under 14 years of age must conform to 7 Indian quality standards. These supportive measures had the combined effect of curbing cheap as well as high-quality imports and encouraging local manufacturers to flourish. The immediate effect was on the long-standing public health concerns surrounding Chinese toys, 67% of which were found to be highly toxic.

    BIS Certification
    BIS Certification

    The introduction of the BIS rules also heightened India’s stance with its major markets like the United Kingdom, Germany, and the Netherlands in Indian exported toys maintaining international standards. It also encouraged many toy importers to enter the manufacturing space to export Indian toys to markets in West Asia and Africa.

    Drawing the Attention of Multiple Players within the Industry

    A National Toy Action Plan was introduced in the year 2020 to boost domestic manufacturing of toys as per the ‘Make in India’ plan and make the market more competitive. The India Toy Fair was launched in 2021 providing a platform for toy manufacturers to exhibit their creations. This led to a direct connection with end customers who could purchase toys from them.  Also, this provided an excellent way for traders to assess the industry’s potential.

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    Creating Toy Clusters

    A program named SFURTI (Scheme of Fund for Regeneration of Traditional Industries) was launched. Under this program, Toy Clusters will be created aiming to bring together in-campus business support services that will include business accommodation and social infrastructure to support the entire workforce working under the Toy Clusters. These Toy Clusters will enfold different business services involved in toy making like raw material suppliers, shared infrastructure, research and development, design and prototyping, testing, training, quality certification, customs, ancillary industries, and service providers. The Indian government has approved a total of USD 23 billion for constructing 8 toy manufacturing clusters – 3 in Madhya Pradesh, 2 in Rajasthan, and 1 each in Uttar Pradesh, Karnataka, and Tamil Nadu.

    Launching the PLI Scheme

    The Government of India is planning to launch a Performance Linked Incentive
    (PLI) Scheme worth USD 35 billion that is specifically for Indian toy manufacturers making both traditional and mechanical toys. Applicable for five years, this scheme will apply to BIS-compliant toys subsidizing the sale of toys by local manufacturers.

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    Utilizing E-commerce

    Digital India’s proactive approach is ensuring that toys manufactured in India are slowly and surely gaining more presence on popular e-commerce sites like Amazon and Flipkart. Indian toys are also available on the government website GeM.

    The proactive measures taken so far by the Indian government to revive the toy industry are highly encouraging as toy manufacturers are seeing newer opportunities. These measures are also helping India in building its image as a trustworthy destination for quality manufacturing. The scope for growth of the Indian toy industry is great which will also boost employment in direct and indirect jobs within the industry.

    Ajay Agarwal, President of the Toy Association of India said – “Now several makers are manufacturing toys based on Indian ethos and culture. Icons like Chhota Bheem are very popular and several manufacturers have the license to manufacture them.”

    Conclusion

    The Indian government’s move to prohibit the sale of non-certified toys is being hailed as a game-changer and a major booster for the Indian toy manufacturing industry. Added to that, the various hand-holding schemes launched by the government are also helping to set up more manufacturing units. The industry is on the path of strong growth and expansion with the talent and ability to become a global toy manufacturing hub as more and more international brands are also exploring the possibility of setting up their manufacturing units in the country.

    FAQs

    Is the toy industry growing in India?

    The Indian toys market reached USD 1 billion in FY 2019-2020. Looking forward, the market is projected to reach US$ 2.73 billion by 2027, exhibiting a CAGR of 12.6% during 2022-2027.

    What changed the Indian toy industry?

    Below are the factors that changed the Indian toy industry:

    • Introducing new policies
    • Domestic manufacturing of toys as per Make in India
    • Creating Toy Clusters
    • Launching the PLI scheme
    • Utilizing E-commerce