Union IT Minister Ravi Shankar Prasad revealed on Saturday that, under the government’s latest Production Link Incentives (PLI) scheme to improve electronics manufacturing, computer manufacturers planned to develop smart devices and components of over 11 lakh crore throughout the next 5 years.
The Government’s PLI scheme to improve the development of smartphone and electronics in India has attracted positive attention from domestic and foreign companies.
Electronic suppliers comprise Pegatron, Samsung, Lava and Dixon who will produce proposed production under this schemes.
India generated $29 billion of electronics in 2014, and $38 billion of imports. Output soared to $70 billion in 2018-19, and imports rose to $57 billion.
Five global brands such as Samsung, Foxconn Hon Hai, Rising Star, Wistron, Pegatron and a total of 22 companies have applied their applications under the PLI Scheme;
Ravi Shankar Prasad responded by saying, “The international mobile phone manufacturing companies have applied only in ₹15,000 and above segment.”
About 60 percent of global mobile phone sales income accounted for by Apple (37 percent) and Samsung (22 percent) and this scheme is expected to increase their worldwide supply base.
“Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in case of Mobile Phones and 45-50% for electronic components,”Ravi Shankar Prasad added.
Production Link Incentives (PLI) policy provides an offer for cumulative sales (over base year) of products under target categories produced in India to qualifying firms for a duration of five years following the base year (FY2019-20) from 4 to 6 per cent.
The submission of the scheme can be lodged before 31.07.2020. Incentives as per the program are eligible as of 01.08.2020.
IT Minister also declared that initiatives forwarded to the ministry by the firms would create up to 12 lakh work prospects — 3 direct lakh jobs and about 9 indirect lakh employment.
