Decoding PLIs: Looking Back, Moving Forward

Research evidence excerpt

Decoding PLIs: Looking Back, Moving Forward

India | Electronic Components EquityJulyResearch6, 2026

Decoding PLIs: Looking Back, Moving Forward Recent Research

ECMS allocation rose by +75% in Feb26 to Rs400bn, while that in Mobile India EMS: Read-Through from China Trip

PLI was cut by -81% (Mar26 expiry). Data suggests that disbursement in 14 Polycab FY26 Annual Report Analysis:

PLIs so far is est ~26% of initial outlay till FY27BE, the highest for Mobile The Eye of the Tiger

PLI at ~Rs199bn (est ~52% of proposed outgo in Sep21). We est ECMS Blue Star: MD Meetings KTAs; Data

to cover ~50% of Mobile BoM. PCB (HDI; Multi-layer) is a focus area ($5bn Center Opportunity

TAM, 85-90% imports; ~30% ADD). We stay bullish on Component plays

India Air Conditioners: Sizzling Through(SYRMA, KAYNES); Hold DIXON (OEM).

Summer

Big Picture: Cumulative PLI analysis: With a view to boost indigenization, Indian Govt Dixon: Sales Growth Decelerates; EBITDA

announced Production-Linked Incentive (PLI) schemes in CY20; Total initial outlay at Rs1.98Tn, Dips YoY

subject to fulfilling mfg/capex benchmarks. Total outgo till FY27BE was est. Rs506bn for all

14 PLIs, est ~26% of initial proposed outlay. LSEM (Mobile PLI 1.0) was the first to finish 6-Y

tenure in Mar26, clocking the highest incentive disbursal of Rs199bn i.e est ~52% of its initial

outlay in Sept21. Other key PLIs (Auto, Pharma, Solar etc) are set to expire in next 2-4Y. Overall

PLI analysis Exh 37-41.

Indian Govt seems to be shifting focus to backward integration now, driving the launch of

ECMS (Components PLI) in Apr25. Its outlay surged by +75% to RS400bn in Feb26 after +ive

industry response. ECMS offers sales & capex incentives, depending on components. Exh 1.