16 applicants receive Ministry of Electronics & IT’s approval under the PLI Scheme
08 October 2020: Ministry of Electronics and Information and Technology (MeitY) has approved 16 eligible applicants under the Production Linked Incentive Scheme (PLI). The international mobile phone manufacturing companies that are approved under Mobile Phone (Invoice Value INR 15,000 and above) Segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
It may be noted that the PLI Scheme for Large Scale Electronics Manufacturing, notified on 1st April 2020, extends an incentive of 4% to 6% on incremental sales (over a base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years after the base year (FY2019-20).
Announcing the approvals, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications said that PLI scheme has been a huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers. Out of the total production of INR 10,50,000 crore in the next 5 years, around 60% will be contributed by exports of the order of INR 6,50,000 crore.
Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are approved by MeitY. 6 companies are approved under the Specified Electronic Components Segment which includes AT&S, Ascent Circuits, Visicon, Walsin, Sahasra and Neolync.
Over the next 5 years, the approved companies under the PLI Scheme are expected to lead to the total production of more than INR 10,50,000 crore (INR 10.5 lakh crore). Out of the total production, the approved companies under Mobile Phone (Invoice Value INR 15,000 and above) segment have proposed production of over INR 9,00,000 crore, The approved companies under Mobile Phone (Domestic Companies) segment have proposed production of about INR 1,25,000 crore and those under Specified Electronic Components segment have proposed a production of over INR 15,000 crore.
The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of INR 11,000 crore. The companies approved under the scheme will generate more than 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. Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in the case of Mobile Phones and 45-50% for electronic components. The demand for electronics in India expected to grow manifold by 2025.
India has witnessed unprecedented growth in electronics manufacturing in the last five years. The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by focusing on size and scale, promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally.