The centre on Tuesday launches three schemes that will create around two million direct and indirect jobs by 2025.
Marking the first anniversary of Narendra Modi 2.0 the government on Tuesday launched the ‘Electronics Manufacturing Scheme 2.0’ to attract more investment in the domestic market. Initially, under this scheme, the government will provide all the required incentives to the top five national and international companies who are willing to manufacture in India.
Ravi Shankar Prasad, Minister of Electronics and Information Technology while addressing media person said “Initially, five global companies and five Indian companies will be selected. We are keen that our own mobile companies become globally competitive, professionally powerful, and are the flag-bearers of the tricolor.” Since 2014, the Modi government came a long way in the mobile manufacturing sector. Earlier there were only two mobile manufacturers in India. But, today we are the second largest mobile manufacturing hub next to China. The intent shown by the government helped to promote electronics manufacturing in India. Apart from mobile, LED/LCDs TVs, auto electronics, medical electronics, industrial electronics, consumer electronics has been another key sector that showed growth in the financial year 2018-19. The electronics sector in India was producing around $29 billion in 2014. The production jumped to $70 billion in the financial year 2019. The major sector responsible for the surge was mobile manufacturers which rose from paltry $2.9 billion to $24.3 billion in 2019.
The minister further said that the company has to follow the guidelines publicised on the official website to enjoy the incentives. “There are norms in the guidelines, such as the company turnover, the quality of their mobiles, etc…there is a proper transparent system in place in the guidelines, whereby, the selection norms will be followed,” the minister said. To boost the electronics sector three new schemes launched- Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing; Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
Under the Production Linked Incentive Scheme (PLI), the government will provide an incentive of 4-6 percent on incremental sales of goods manufactured in India for the next five years (till 2025) covered under the targets eligible scheme considering 2019-20 as a base year. The SPECS schemes will provide a financial incentive of 25 percent on capital expenditure for the identified list of electronic goods, including electronic components, semiconductors, and display fabrication units, among others. The EMC 2.0 will provide support for the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds or Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.
The Prime Minister calls for ‘Aatma Nirbhar Bharat’ and ‘Vocal for Local’ might be seen as a golden chance for the electronics manufacturers. With the buzz around the world with many big MNC companies want to shift their manufacturing unit out of China, the government and industries experts are in consideration with them. The government intends to boost the electronics ecosystem in the country and to create a world-class electronics manufacturing hub to attract the investor.