The government plans to extend the production-linked incentive scheme to domestic manufacture of essential electronic devices such as laptops and tablets, following the success of a scheme to locally produce mobile phones and their components, the minister of communications, electronics and technology said. of the information, Ravi Shankar Prasad. Monday.
“Now my focus is that India is emerging as a great hub for the manufacture of other important electronic devices, which have become an integral part of our daily existence, that is, from laptops to tablets to servers,” said Prasad in the annual general meeting meeting of the industrial body Ficci.
Sixteen domestic and international mobile phone and electronic component manufacturers, including Samsung, Foxconn and Bhagwati Products, phone maker Micromax, received approval from the Center for the PLI scheme that was launched in April to boost local manufacturing.
The other eligible international phone manufacturers are Rising Star, Wistron, and Pegatron. With the exception of Samsung, the other foreign companies are contract manufacturers for Apple Inc. Samsung and Apple together account for almost 60% of global mobile revenue.
The need for local manufacturing arose with the pandemic, which showed India’s huge dependence on imported products.
Tensions between India and China in June added to this crisis. Since then, India has banned more than 200 Chinese apps on national security grounds, even as it continues to encourage the use of locally developed apps.
Under the PLI scheme for mobile phones, the government will give a 4-6% incentive to eligible electronics companies on incremental sales of manufactured products – mobile phones and electronic components such as printed circuit boards and sensors, among others – for five years. .
The base year is 2019-20 and the incentives are applicable as of August 1.
For five years, the scheme is expected to result in decent production ₹10.5 billion, of which more than 60% will be contributed by exports.
The plan is expected to generate an additional investment of up to ₹11,000 crore and create 300,000 direct jobs.
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