Prasad highlighted that during COVID19, due to attractive polices like PLI and SPECS large amount of investments have come to India in the field of electronics manufacturing
India and Japan signed MoU to enhance cooperation in the field of Information and Communications Technologies today. MoU was signed by Union Minister for Communications, Electronics and IT Ravi Shankar Prasad and the Japanese Minister for Internal Affairs and Communications Takeda Ryota and it was exchanged through a video conference.
Prasad urged the Japanese electronics industry to invest in India and avail the benefits of the new technologies. Minister further highlighted the great potential India holds for Japanese investors in the field of 5G and 5G based services, Internet of Things, digital health technologies etc.
Speaking on this occasion the Union Minister for Communication, Electronics and Information Technology Ravi Shankar Prasad highlighted the timely execution of connecting Andaman & Nicobar Islands with submarine optical fiber cable as a great example of cooperation between India and Japan. He further shared the rapid adoption of innovative digital technologies by India during COVID19 pandemic such as AarogyaSetu app, use of Aadhaar Enabled Payment System for doorstep disbursement of cash by India Post, digital hearings in Courts of India and rapid growth of digital payments. He further highlighted that during COVID19, due to attractive polices like PLI and SPECS large amount of investments have come to India in the field of electronics manufacturing.
The production-linked incentive (PLI) scheme launched to boost local manufacturing may add $520 billion to the gross domestic product in the next five years, as per a report. According to analysts, electronics, particularly mobile phone manufacturers, stand to be the biggest beneficiary of the scheme. Other sectors that will benefit include automobile, battery, pharma, food, textiles, and telecom.
In March, the government announced the PLI scheme to help lower the country’s dependence on imports, mainly from China. It did this to incentivise and inviting global as well as capital-rich companies to set up manufacturing capacities in the country. Domestic brokerage Sharekhan by PNB Paribas said in a note said that the PLI scheme may add around $520 billion to the GDP in the next five years.
The scheme is applicable for 10 select sectors, which are labour-intensive and expected to provide to the growing employment needs and achieving size and scale in manufacturing. As part of the scheme, the government has made a budgetary outlay of Rs 1.96 lakh crore or $ 26 billion.