India Announces Rs.50,000 Crore Plan to Boost Electronics Manufacturing

India’s Union Minister for Electronics & Information Technology Ravi Shankar Prasad has introduced three new electronics manufacturing pointers. These guidelines are geared toward boosting native manufacturing and attracting international investments. The government says these three schemes will account for Rs. 50,000 crores or roughly $7 billion.

The schemes in question are:

• Manufacturing Linked Incentive Scheme (PLI) for Massive Scale Electronics Manufacturing
• Scheme for Promotion of Manufacturing of Digital Components and Semiconductors (SPECS)
• Modified Electronics Manufacturing Clusters (EMC 2.0).

“The three new Schemes are anticipated to attract substantial investments, enhance manufacturing of mobile phones and their components/ parts to around Rs.10,00,000 crore by 2025 and generate around 5 lakh direct and 15 lakh indirect jobs.”, reads the official press release.

As a part of the PLI scheme, the government will present an incentive of four percent to six percent on incremental gross sales of products manufactured in India for a interval of 5 years subsequent to the bottom year.

By means of SPECS, India goals to offer up to 25 percent incentive on capital expenditure for digital parts, semiconductor/show fabrication models. As well as, the scheme facilitates the manufacturing of Prepared Constructed Factory (RBF) sheds and Plug & Play services for ensuring seamless deployment.

Initially, the authorities will choose 5 international and 5 Indian smartphone manufacturers for this initiative. Whereas the names will likely be introduced within the next couple of months, we could expect Apple to be one of them.

Talking of the initiative, Niti Aayog CEO Amitabh Kant stated, “The schemes will assist India turn out to be totally self-reliant and penetrate international markets. It will carry global worth chain and allow India to turn out to be a leader in electronics manufacturing.”