The government firmly established that the Production Linked Incentive (PLI) scheme for large-scale electronic manufacturing and IT hardware, as well as the scheme to promote component manufacturing, will work towards making the country self-reliant of Chinese electronic products.

Besides these schemes, the Minister of State for Electronics and IT, Sanjay Dhotre notified Lok Sabha that the government will take the responsibility to broaden the sourcing of electronic components and raw materials, as well as "make available the indigenous equivalents of the Chinese electronic products" by encouraging local industries.

As a part of the scheme for large-scale electronic manufacturers, the government will award a four to six percent incentive to firms that accomplish higher sales in mobile phone manufacturing and manufacturing of specific electronic components like Assembly, Testing, Marking, and Packaging (ATMP) units.

A peak into 2020 showed that the government established a scheme that promoted the manufacturing of electronic components as well as semiconductors offered a financial incentive of 25 percent on capital spending for a specific list of electronic commodities that make up the downstream value chain of electronic products, such as electronic components, semiconductors, display fabrication units, ATMP units, and specialised sub-assemblies and capital goods for manufacture of aforesaid goods.

According to Dhotre's information, the PLI scheme for IT hardware provides eligible enterprises with a one-to-four percent incentive on net incremental sales (over base year) of products produced in India and covered by the target segment for a four-year period.

“The Electronics Development Fund (EDF) was established as a 'Fund of Funds' to invest in professionally managed 'Daughter Funds,' which will provide risk capital to start-ups and enterprises developing new electronics and information technology technologies. EDF has pledged Rs 409 crore to nine Daughter Funds with a target corpus of Rs 2,626 crore "Dhotre explained.

He went on to say, "on February 25, 2019, the National Policy on Electronics for 2019 (NPE 2019) was announced. The goal of NPE 2019 is to establish India as a global hub for electronics system design and manufacture (ESDM) by encouraging and promoting capacities in the country for designing core components, such as chipsets, and creating a competitive climate for the industry”.

The PLI scheme is designed so that the government only pays bonuses after the investment is completed, jobs are created, and production and sales targets are met. The central government launched the scheme in March of last year,in order to increase domestic manufacturing and make the country more internationally competitive. Also, it believes that the scheme will help position the country as a worldwide hub for telecom and networking product manufacture.