The Ministry of Electronics and Information and Technology (MeitY) has approved 16 eligible applicants which includes Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron under the PLI (Production Linked Incentive) Scheme.
The international mobile phone manufacturing companies that are approved under Mobile Phone (invoice value Rs. 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.
Under Mobile Phone (Domestic Companies) segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics were approved by MeitY. 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 were approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra and Neolync.
Providing approval to eligible applicants under the PLI Scheme, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said, “Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a self-reliant India.”
Minister further said that 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.
Over the next 5 years, the approved companies under the PLI Scheme are expected to lead to total production of more than Rs. 1,050,000 crore. Out of the total production, the approved companies under Mobile Phone (Invoice Value INR 15,000 and above) segment have proposed a production of over Rs. 900,000 crore. The approved companies under Mobile Phone (Domestic Companies) segment have proposed a production of about Rs. 125,000 crore and those under Specified Electronic Components segment have proposed a production of over Rs. 15,000 crore.
The companies approved under the scheme are expected to promote exports significantly. Out of the total production of Rs. 1,050,000 crore in the next 5 years, around 60% will be contributed by exports of the order of Rs. 650,000 crore.
The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of Rs. 11,000 crore.
The companies approved under the scheme will generate more than 2 lakh direct employment opportunities in next 5 years along with 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 case of mobile phones and 45-50% for electronic components.
With the demand for electronics in India expected to grow manifold by 2025, Ravi Shankar Prasad expressed confidence that the PLI scheme and other initiatives will help in promoting electronics manufacturing and make India a competitive destination for electronics manufacturing and give a big boost to AtmaNirbhar Bharat.
Creation of domestic champion companies in electronics manufacturing under the Scheme will give fillip to vocal for local while aiming for global scale.
Production Linked Incentive Scheme for large scale electronics manufacturing was notified on 1st April, 2020 and extends an incentive of 4% to 6% 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).