Minister of State for Electronics & Information Technology, Shri Rajeev Chandrasekhar. Government has notified schemes in order to boost electronics manufacturing in the country and incentivize large investments in the electronics value chain.
The details of the schemes and number of beneficiary companies are as under:
Production Linked Incentive Scheme (PLI)
Steps taken by the Government to promote the electronics hardware manufacturing sector in the country
National Policy on Electronics 2019 has been notified by Ministry of Electronics and Information Technology (MeitY) to attract and incentivize large investments in the electronics value chain and promote exports, following Schemes have been notified:
- Production Linked Incentive Scheme (PLI)for Large Scale Electronics Manufacturing provides an incentive of 4% to 6% to eligible companies on net incremental sales (over base year) involved in mobile phone manufacturing and manufacturing of specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units, for a period of five (5) years.
- Production Linked Incentive Scheme (PLI) provides an incentive of 4% to 2% / 1% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of four (4) years. The Target Segments under PLI Scheme include (i) Laptops (ii) Tablets (iii) All-in-One PCs and (iv) Servers.
- Modified Electronics Manufacturing Clusters Scheme provides support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country.
- Electronics Manufacturing Clusters (EMC) Scheme: Electronics Manufacturing Clusters (EMC) Scheme was notified on 22nd October, 2012 to provide support for creation of world-class infrastructure along with common facilities and amenities for attracting investment. Under the Scheme, 19 Greenfield EMCs and 3 Common Facility Centres (CFCs) measuring an area of 3,464 acres with total project cost of INR 3,732 crore including Government Grant-in-Aid of INR 1,529 crore have been approved.
- Electronics Development Fund (EDF): Electronics Development Fund (EDF) has been set up as a “Fund of Funds” to participate in professionally managed “Daughter Funds” which in turn will provide risk capital to start-ups and companies developing new technologies in the area of electronics and Information Technology (IT).
Our analysis
We feel that government has undertaken a lot many steps to make sure that India can become a manufacturing hub for electronic goods and pave the way for export of these items.
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