- The scheme aims to make India a hub for manufacturing of electronics and components
- It will be applicable to devices with an invoice value of $200 or more
As per a report by the Times of India, the government is working on a Rs 42,000 crore plan to boost local manufacturing of mobile phones and increase production under Make in India scheme. It plans to offer a benefit of four-to-six per cent on incremental sales of goods manufactured locally for a period of five years. The report said that the beneficiaries of this scheme will be Apple Foxconn, Flex, and Wistron and local players like Micromax, Karbonn, Lava, and Intex.
According to the report, the scheme will be rolled out by the IT ministry and has been prepared in consultation with the ministries of finance and commerce and NITI Aayog. It aims to make India a hub for the manufacturing of electronics and components.
Invoice value of $200 or more
The report stated that the scheme will be applicable to devices with an invoice value of $200 or more. This will exclude many mobile makers like Vivo, Oppo from the scope of the scheme. As per the report, the package is likely to be disbursed in tranches with around Rs 4,030 crore planned to be disseminated in the first year, Rs 6,395 in the second year, Rs 8,760 crore in third, Rs 11,790 crore in the fourth year and Rs 10,820 crore in the fifth year.
Generate Rs 5.8 lakh crore of exports
As per the report, this scheme will help to create mobile phone and parts production worth Rs 8.2 lakh crore and generate Rs 5.8 lakh crore of exports and two lakh new jobs. It will also earn the exchequer Rs 4,782 crore from direct taxes. The report also said that though a major part of the funds will be for mobile phone manufacture, associated surface-mounted technology (SMT), printed circuit boards, and sensors and micro/nano-electronic components) and ATMP units will also be covered.