The government is in discussions with mobile phone makers, IT firms and other electronics manufacturing companies on the next version of the production linked incentive (PLI) scheme, Union Electronics and IT minister Ashwini Vaishnaw has said, indicating that a Cabinet proposal will follow once consultations are complete.

In an interview with PTI, Vaishnaw said the upcoming phase of policy support, combined with fresh budget measures, is expected to lift employment across electronics manufacturing, IT services, AI and global capability centres (GCCs) well beyond current levels.

The existing mobile PLI scheme is set to end in March, and the Union Budget for 2026–27 did not explicitly announce an extension. Asked about the roadmap ahead, the minister said the government remains engaged with manufacturers and will move once there is clarity.

“We keep moving as we go. For example, in the case of semiconductors, there was a lot of work which was already done for the budget. Same in the case of mobile and IT hardware, and all the manufacturers, we are constantly in talks with them. As and when things get finalised, we will take it to the cabinet and get the things approved,” Vaishnaw said.

He said the Budget has laid out the government’s thinking on the long-term goal of ‘Viksit Bharat 2047’, with a focus on an economy that is resilient, atmanirbhar and supports employment-led growth across sectors.

A key element of that plan is the electronics component manufacturing scheme. According to Vaishnaw, 46 units have already been approved and several more proposals are under consideration.

The Ministry of Electronics and IT has approved 46 applications till January, involving investments of Rs 54,567 crore and promising direct employment for around 51,000 people.

The response from industry has exceeded expectations, with nearly 260 applications received so far. The minister said recent budget measures would help accelerate this momentum.

These include a Rs 40,000-crore component scheme, tax holidays for AI data centres, and a five-year income tax exemption for foreign suppliers of capital equipment operating in bonded zones.

“These four reforms which have been announced will significantly improve employment in the electronics and IT and AI-based services,” Vaishnaw said, adding that employment across electronics manufacturing, IT services, GCCs and related industries already stands at over one crore.

On the outlook ahead, he said the pace of investment now being seen could translate into a sharp rise in jobs.

“I would not be surprised if it (the number) is 1.5 crore in the coming two years itself because all the component manufacturing units are getting set up now,” he said.

The budget has also proposed raising safe harbour limits to Rs 2,000 crore and unifying IT taxes, steps that industry bodies say will reduce compliance and litigation risks for software exporters and GCCs.

Alongside this, ISM 2.0 and cloud tax holidays signal India’s intent to attract global digital infrastructure investments. Vaishnaw pointed to the scale of change already underway in electronics manufacturing.

Over the last decade, the sector has grown six-fold, while electronics exports have risen eight times. Electronics items are now the country’s third-largest export category.

“With the excellent success of electronics component manufacturing scheme in which we have already approved 46 units, and many more are in the pipeline, this increased allocation will create a very deep-rooted electronic component manufacturing ecosystem in a country, which means, we will be able to meet our own demand significantly and will become the global manufacturer for many components,” he said.

The electronics manufacturing segment currently employs around 25 lakh people. According to the minister, the push into component manufacturing will expand this base further.

“With the electronics component manufacturing, we will see much higher employment potential in electronics manufacturing,” he said. On semiconductors, Vaishnaw said India has entered a new phase after decades of aspiration.

The focus now, he said, is on building a self-reliant ecosystem that covers manufacturing equipment, materials and chip design.

He described the effort as the realisation of a long-standing national goal, and said the next phase will concentrate on laying the foundations for a full semiconductor value chain within the country.