Access to global markets and expenditure support is essential to make the production linked incentive (PLI) scheme for electronics components manufacturing successful, said A Gururaj, Managing Director at Optiemus Electronics. Earlier in December, the Ministry of Electronics and Information Technology (MeitY) said the Cabinet is considering the ₹40,000-crore scheme to reduce dependence on imports from China and Hong Kong.

“To be successful, the new PLI scheme for electronics components manufacturing needs to adopt a multi-pronged approach, such as having adequate capital expenditure support, providing necessary operational expenditure incentives, addressing non-tariff barriers, and providing access to global markets to allow Indian companies to compete globally,” said Gururaj.

The Managing Director also advised the industry to create products where produced can be used to create new markets. This in turn calls for access to global markets, support for testing, getting global approvals, etc. Further, he also called for creation of high-value jobs to develop “a full-blown” electronics manufacturing ecosystem. “Unlike assembly of finished goods, where floor staff are required, we would need a highly skilled workforce to reach this next level,” he said.

Future plans

Regarding Optiemus’s 2025 plans, Gururaj said the company plans to partner with brands in telecom and IT hardware products like servers and almost double revenues in the next two years. The company currently works in the telecom equipment and hearable/wearable categories with brands like Tejas Networks and Xiaomi. The company also plans to foray into the electronics supply chain and partner with foreign companies to promote greater original design manufacturing (ODM) capabilities in India.