The government on Tuesday approved 16 companies under a Production Linked Incentive Scheme (PLI) for electronics manufacturing, announcing an incentive of 4 per cent to 6 per cent on incremental sales of goods under target segments that are manufactured in India for a period of five years.
Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron are among international companies approved under the mobile phone segment. Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple and Samsung 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 India, said a press release by Ministry of Electronics & IT.
Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are among the Indian companies approved for the mobile phone segment. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
Six companies-- T&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync--have been approved under the Specified Electronic Components Segment.
All these companies are expected to promote exports significantly. Out of the total production of Rs 10,50,000 crore in the next five years, around 60% will be contributed by exports of the order of Rs 6,50,000 crore, said the ministry .The companies will generate more than two lakh direct employment opportunities in five years along with creation of additional indirect employment.
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country," said Ravi Shankar Prasad, Minister for Electronics & IT, Communications.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU