The Ministry of Electronics and Information and Technology (MeitY) has approved 16 applicants, including Samsung, Foxconn Hon Hai, Pegatron, Lava, and Bhagwati (Micromax), among others, under the Production Linked Incentive (PLI) scheme.
Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron are the international phone manufacturing companies approved under the PLI scheme in Mobile Phone (invoice value Rs 15,000 and above) segment.
Three of these companies, namely Foxconn Hon Hai, Pegatron, and Wistron, are contracted by Apple to manufacture iPhones.
The PLI scheme is aimed at increasing Samsung and Apple’s manufacturing base in the country.
Domestic companies include Lava, Bhagwati (Micromax), UTL Neolyncs, Optiemus Electronics, and Padget Electronics.
Additionally, AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync have been approved under the Specified Electronic Components Segment.
The 16 companies approved under the scheme are expected to lead to the total production of over 10.5 lakh crore in the next five years.
The companies approved under phones (Invoice Value Rs 15,000 and above) have proposed production of over Rs 9 lakh crore. The approved domestic companies have proposed production of around Rs 1.25 lakh crore, while the companies approved under Specified Electronic Components segment have proposed production of over Rs 15,000 crore under the PLI scheme.
Out of the total production of Rs 10.5 lakh crore in the next five years, around 60 percent will be contributed by exports.
The companies will bring additional investment in electronics manufacturing to the tune of Rs 11,000 crore.
They are also expected to generate more than 2 lakh direct employment opportunities in five years as well as nearly three times that number in indirect employment.
Domestic value addition is expected to grow from the current 15-20 percent to 35-40 percent in case of phones and 45-50 percent for electronic components.
Union Minister for Electronics & IT, Communications, Law and Justice Ravi Shankar Prasad said the PLI scheme has been a huge success in terms of applications received from international and domestic mobile phone manufacturers and electronic components manufacturers.
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country," he said.
Moreover, the demand for electronics in India is expected to surge by 2025.
Prime Minister Narendra Modi is confident that PLI scheme coupled with other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and boost Atmanirbhar Bharat.
Additionally, the championing of domestic companies in electronics manufacturing under the scheme will also support vocal for local.
The scheme will provide an incentive of 4 to 6 percent on incremental sales over the base year of goods manufactured in India and covered under target segments to eligible companies for a period of five years subsequent to the base year (FY20).