The Government of India today approved ten mobile device manufacturing companies for its Production Linked Incentive Scheme (PLI) scheme to boost large scale electronics manufacturing in the country as part of its Atmanirbhar Bharat initiative.
Along with that, he has also given his go-ahead to six other eligible applicants under the scheme. The PLI scheme, notified on April 1, extends an incentive of 4% to 6% on incremental sales (during the base year) of goods in the target segments that are manufactured in India to eligible companies, for a period of five years after the base year (FY2019-20).
During the approval, Ravi Shankar Prasad, Union Minister for Electronics and IT, Communications, Law and Justice, said that the PLI scheme has been highly successful in terms of requests received from mobile phone manufacturing companies and component manufacturers. electronics globally and nationally.
Prasad further said: “We are optimistic and hope to build a solid ecosystem throughout the value chain and integrate with global value chains, thus strengthening the electronics manufacturing ecosystem in the country.”
The international mobile phone manufacturing companies that are approved in the mobile phone segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Of these, 3 companies, namely Foxconn Hon Hai, Wistron and Pegatron, are contract manufacturers of Apple iPhones. Apple (37%) and Samsung (22%) together account for almost 60% of global mobile phone sales revenue and this scheme is expected to increase its manufacturing base in the country. The invoice value of the telephones manufactured by these companies will be ₹15,000 and more, as already notified by the government.
In the domestic phone manufacturing segment, the government approved Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics. These companies are expected to expand their manufacturing operations significantly and become national champions in the production of mobile phones.
In addition to this, six companies are approved in the specified electronic components segment, including AT&S, Ascent Circuits, Visicon, Walsin, Sahasra and Neolync, the Ministry of Electronics and IT stated.
Over the next 5 years, companies approved under the PLI scheme are expected to lead to a total production of more than ₹10,50,000 crore. Of the total production, the companies approved in Mobile phone (Invoice value ₹15,000 and more) have proposed a production of more than ₹9 million lakh rupees.
Approved companies in the mobile phone segment (domestic companies) have proposed a production of approximately ₹1.25,000 crore and those under the Specified Electronic Components segment have proposed a production of more than ₹15,000 crore.
The companies approved under the scheme are expected to significantly promote exports. Of the total production of ₹10.50 billion rupees in the next 5 years, about 60% will be contributed by exports of the order of ₹6,50,000 crore.
They will bring additional investments in the manufacture of electronic products at the rate of ₹11,000 crore.
Businesses approved under the scheme will generate more than 2 lakhs of direct employment opportunities over the next 5 years along with additional indirect job creation of almost 3 times direct employment.
National value added, the contribution of local entities in production, is expected to increase from the current 15-20 percent to 35-40 percent for mobile phones and from 45 to 50 percent for electronic components. according to the statement. additional.
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