MeitY noted that production of Rs 10.5 lakh crore and exports of Rs. 6.5 lakh crore are expected over next five years
Ministry of Electronics and Information and Technology (MeitY) has approved 16 eligible applicants under the PLI Scheme. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing notified on first April 2020,extends an incentive of four to six per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country,” said Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice.
The minister also noted that the PLI scheme has been huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers. He noted that the industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a self-reliant India.
Lava and Micromax among India-based companies
Under mobile phone (Domestic Companies) segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics were approved by MeitY. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
The international mobile phone manufacturing companies that are approved under mobile phone (Invoice Value Rs 15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, three companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37 per cent) and Samsung (22 per cent) together account for nearly 60 per cent of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
Six companies approved under the Specified Electronic Components Segment include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
“Over the next five years, the approved companies under the PLI Scheme are expected to lead to total production of more than Rs 10,50,000 crore (Rs 10.5 lakh crore). Out of the total production, the approved companies under mobile phone (Invoice Value Rs 15,000 and above) segment have proposed a production of over Rs 9,00,000 crore, The approved companies under Mobile Phone (Domestic Companies) segment have proposed a production of about Rs 1,25,000 crore and those under Specified Electronic Components segment have proposed a production of over Rs 15,000 crore,” read MeitY’s official statement.
It continued, “The companies approved under the scheme are expected to promote exports significantly. Out of the total production of Rs 10,50,000 crore in the next five years, around 60 per cent will be contributed by exports of the order of Rs 6,50,000 crore. The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of Rs 11,000 crore.”