Mobile Phone and Components Production to Reach Rs 10,00,000 Crore by 2025: Meity
- The ministry has unveiled all the terms and conditions of the PLI, SPECS and EMC 2.0 schemes
- These schemes, as Meity informed, shall contribute significantly to achieving a USD one Trillion digital economy and a USD five Trillion GDP by 2025
The ministry of electronics and information technology has formally unveiled all the conditions and specifications of three schemes aimed to make India’s electronics manufacturing capabilities to a new level. Dubbed 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, these were first announced in the month of March 2020.
“This triology of schemes entail an outlay of about Rs 50,000 crore(approximately USD 7 billion).The Schemes will help offset the disability for domestic electronics manufacturing and hence, strengthen the electronics manufacturing ecosystem in the country. The three Schemes together will enable large scale electronics manufacturing, domestic supply chain of components and state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners,” read Meity’s official statement.
The PLI Scheme shall extend an incentive of four to six per cent on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year. The SPECS shall provide financial incentive of 25 per cent on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.
The EMC 2.0 shall provide 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 chains.
Promotion of electronics manufacturing, as Meity informed, has been a key component of Make in India program. It is to be noted here that India’s production of electronics grew from USD 29 billion in 2014 to USD 70 billion in 2019. The growth in mobile phone manufacturing in particular has been remarkable during this period.
From two mobile phone factories in 2014, India now has become the 2nd largest mobile phone producer in the world. Production of mobile handsets in 2018-19 has reached 29 crore units worth Rs 1.70 Lakh crore from six crore units worth Rs 19,000 crore in 2014. While the exports of electronics has increased from Rs 38,263 crore in 2014-15 to Rs 61,908 crore in 2018-19, India’s share in global electronics production has reached three per cent in 2018 from 1.3 per cent in 2012.