New Delhi, April 28 -- The launch of the Indian government's production-linked incentives (PLI) for the electronics manufacturing services (EMS) sector, inviting applications from 1 May, could not have come at a better time, with the disruption caused by the US-China tariff war. While the US has exempted essential electronics from reciprocal tariffs applicable to Chinese imports, they would still attract a 20% tariff against nil from other countries.

Further, uncertainty surrounding the overall trade dynamics is pushing companies to consider building alternative supply chains. Here, India emerges as a strong supply base.

The PLI scheme would provide incentives to the sector for six years, focusing on component manufacturing and increasi...