Since its launch in 2020, India’s production-linked incentive scheme has attracted over USD 17 billion in investments, benefitting manufacturing in 14 sectors. 

The scheme has notably increased electronics production, leading to the creation of almost one million jobs. India is now focusing on expanding its laptops and IT hardware manufacturing to reduce imports from China.

The scheme offers 4-6% cash incentives on incremental sales to manufacturers and has successfully attracted investments and boosted manufacturing. As a result, India has become a global hub for electronics manufacturing, particularly smartphones, and is now the second-largest producer of mobile phones. 

Notably, India’s IT hardware market, including laptops, is estimated at nearly USD 20 billion, with almost USD 5 billion in domestic production.

The government has extended the “import management system” and is signalling its intent to reduce imports, particularly from China. Additionally, India has approved incentives for 27 IT hardware manufacturers and expects about USD 42 billion in production over the next few years.

Dixon Technologies, a local electronics manufacturer, has qualified for the incentives scheme and aims to meet 15% of India’s domestic demand by the fiscal year 2025/26. With separate pacts with global firms like HP, Dixon plans to create a capacity of 2 million units by FY26, catering to 15% of India’s total requirement.

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