A total amount of Rs 1,45,980 crore has been approved for a financial outlay spread over five years. The new PLI scheme mentions of a semiconductor as well as a display fab
The union cabinet chaired by the Prime Minister, Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 key sectors. The move, as per an official note by the government of India, is aimed towards enhancing India’s manufacturing capabilities and exports in lieu of Atmanirbhar Bharat.
Notable inclusions under the Electronic/Technology Products PLI scheme include Semiconductor Fab, Display Fab and IoT devices. It is worth mentioning here that electric vehicles might also fall under the PLI scheme for automobile and auto components. In fact the one of the biggest amount, in the new PLI schemes as incentive, has been earmarked for Advance Chemistry Cell (ACC) Battery vertical at Rs 18,100 crore.
“The PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain,” read an official press note released by the government of India.
It continued, “India is expected to have a USD 1 trillion digital economy by 2025. Additionally, the Government’s push for data localization, Internet of Things market in India, projects such as Smart City and Digital India are expected to increase the demand for electronic products. The PLI scheme will boost the production of electronic products in India.”
Advance Chemistry Cell (ACC) Battery PLI
The government of India has earmarked Rs 18,100 crore as approved financial outlay for implementing the PLI scheme in the Advance Chemistry Cell (ACC) Battery vertical. NITI Aayog and Department of Heavy Industries has been made the implementing agency for the same.
“ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles, and renewable energy. The PLI scheme for ACC battery will incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country,” read government’s official press note.
Electronic/Technology Products PLI scheme
The government of India has earmarked Rs 5,000 crore as approved financial outlay for implementing the PLI scheme in the Electronic/Technology Products vertical. The Ministry of Electronics and Information Technology has been made the implementing agency for the same.
Product lines included in the PLI scheme include semiconductor fab, display fab, laptop/notebooks, servers, IoT devices and specified computer hardware. It is to be noted here that PLI scheme for encouraging production of smartphones in India has already been announced. The companies approved for the same ere announced recently.
Automobile and Auto Components PLI scheme
The government of India has earmarked Rs 57,042 crore as approved financial outlay for implementing the PLI scheme in the Automobile and Auto Components vertical. The Department of Heavy Industries has been made the implementing agency for the same.
“The automotive industry is a major economic contributor in India. The PLI scheme will make the Indian automotive Industry more competitive and will enhance globalization of the Indian automotive sector,” read government’s officia press note.
Telecom Equipment PLI Scheme
The government of India has earmarked Rs 12.195 crore as approved financial outlay for implementing the PLI scheme in the Telecom Equipment vertical. The Department of Telecom has been made the implementing agency for the same.
“Telecom equipment forms a critical and strategic element of building a secured telecom infrastructure and India aspires to become a major original equipment manufacturer of telecom and networking products. The PLI scheme is expected to attract large investments from global players and help domestic companies seize the emerging opportunities and become big players in the export market,” read the official note.
Core Transmission Equipment, 4G/5G, Next Generation Radio Access Network and Wireless Equipment, Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other WirelessEquipment and Enterprise equipment: Switches, Router have been listed as products in the category.
Solar PVs PLI Scheme
The government of India has earmarked Rs 4,500 crore as approved financial outlay for implementing the PLI scheme in the Solar PVs vertical. The Ministry of New and Renewable Energy has been made the implementing agency for the same.
“Large imports of solar PV panels pose risks in supply-chain resilience and have strategic security challenges considering the electronic (hackable) nature of the value chain. A focused PLI scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing,” read the official note.
White Goods PLI scheme
The government of India has earmarked Rs 6,238 crore as approved financial outlay for implementing the PLI scheme in the White Goods vertical. The Department for Promotion of Industry and Internal Trade has been made the implementing agency for the same.
“White goods (air conditioners and LEDs) have very high potential of domestic value addition and making these products globally competitive. A PLI scheme for the sector will lead to more domestic manufacturing, generation of jobs and increased exports,” read the official note.
Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem, as per the government, will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities.