PLI Scheme: Mobile Manufacturers Invested Rs 1,300 Crore In December 2020 Quarter


The scheme approved 16 applications with an incentive outlay of Rs 36,440 crore in its first round 

Under the production linked incentive (PLI) scheme for large scale electronics manufacturing, mobile manufacturers produced goods worth Rs 35,000 crore and invested Rs 1,300 crore in the December 2020 quarter, notified the Ministry of Commerce and Industry in an official statement.

The PLI scheme approved 16 applications with an incentive outlay of Rs 36,440 crore in its first round. Of these, 5 companies fall under the Global Champions category, 5 companies under the Domestic Champions category, and 6 companies under the Electronic Components category. The scheme will provide companies with an incentive of 4 to 6 per cent on incremental sales for a period of five years subsequent to the base year.

Approved Proposals

Companies whose proposals have been approved include Samsung and Rising Star. Apple’s suppliers Foxconn, Wistron and Pegatron have also been approved.

“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,” read the statement.

Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics were among the Indian companies approved under the scheme. These companies, added the statement, are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.

The statement further explained, “Over the next five years, the scheme is expected to lead to a total production of about INR 10.5 lakh crore. More than 60 per cent of production is expected to be exported. The scheme is also expected to bring in an additional investment of INR 11,000 crore. Value addition is expected to go up from 20-25% presently to 35-40% by 2025.”

The statement added that additional employment of 22,000 jobs was generated during this period and the scheme envisages to generate approximately 2 lakh direct employment opportunities in the next 5 years along with the creation of additional indirect employment of nearly 3 times the direct employment.


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