“Electronic manufacturing sector is an example of the change that the PLI scheme is bringing.”
Narendra Modi, Prime Minister of India, in his 15 August speech said that India is now importing mobile phones worth over $3 billion. The country, as he mentioned, used to once import mobile phones worth $8 billion about seven years ago.
“Electronic manufacturing sector is an example of the change that the PLI scheme is bringing. Seven years ago we used to import mobile phones of approximately $8 billion. Today, we are exporting mobile phones worth $3 billion,” noted the PM.
The Ministry of Electronics and Information and Technology (MeitY) had approved 16 eligible applicants under the PLI Scheme. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing notified on first April 2020,extends an incentive of four to six per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
The Prime Minister hinting towards the brands noted that their products are the brand ambassadors of India and as long as someone is using these products they will say that the products are made in India.
The approved companies under the PLI Scheme are expected to lead to total production of more than Rs 10,50,000 crore (Rs 10.5 lakh crore). Out of the total production, the approved companies under mobile phone (Invoice Value Rs 15,000 and above) segment have proposed a production of over Rs 9,00,000 crore.
The approved companies under Mobile Phone (Domestic Companies) segment have proposed a production of about Rs 1,25,000 crore and those under Specified Electronic Components segment have proposed a production of over Rs 15,000 crore.
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.
