Electronics manufacturers urge Indian Govt to introduce PLI scheme for components, wearables

Representatives of Manufacturers Association for Information Technology submitting a representation to IT ministry secretary S Krishnan on May 21

A trade body representing major electronic manufacturers, including Asus, Dell, Google, Canon, Dixon, and others, have called upon the Indian government to introduce initiatives like the production-linked incentive (PLI) scheme for electronic components and wearables.

In a letter addressed to S. Krishnan, the secretary of the Ministry of Electronics and Information Technology, the Manufacturers Association for Information Technology (MAIT) said that such incentives would not only boost exports but also foster large-scale production capacity and attract investment in the electronics sector.

Similarly, a PLI scheme for hearables and wearables would help in fulfilling the government's ambitious export targets, the industry body said.

The industry body's other members include Harman, Konica Minolta, 3M. Dixon manufactures laptops in India for Lenovo.

This appeal comes as the Ministry of Electronics and Information Technology's plans to introduce similar PLI schemes for the electronics ecosystem. Senior officials had earlier told Moneycontrol that the government will initiate a consultation process for a possible electronics components PLI after the ongoing Lok Sabha elections end.

"For component PLI in particular, we could look at making one PLI for electronics rather than splitting across sectors to build electronics. Based on past experiences, focusing solely on one sector might have limited the effectiveness of the component PLI for mobiles," said the submission by MAIT. Moneycontrol has reviewed a copy of the letter.

The industry body also suggested that the upcoming cybersecurity strategy be aligned with key international partners’ legislative or regulatory frameworks. This, the body said, will support the creation of more trusted and secure international cyber-secure supply chains and collective security.

“The advent of worldwide value chains and India's PLI and Make in India scheme has led to a notable increase in the country’s worldwide trade, especially in the electronics and ICT sectors. At MAIT, we believe that for India to seamlessly integrate into global supply chains, regulatory customization that encourage global leaders to invest and allow local companies to participate are essential," Rajkumar Rishi, President of MAIT, said.

"As more companies think about investing in Indian manufacturing, we predict faster growth in output, exports, and the overall economy. One of the main industry priorities listed in MAIT's Industry Recommendations for MeitY and related ministries is developing a robust cybersecurity strategy for the new India," Rishi added.

Apart from that, MAIT also presented ministry/department-wise suggestions, including those for the Prime Minister's Office, Ministry of Commerce and Industry, Ministry of Finance, Department of Telecom and others.

MAIT requested the Ministry of Commerce to support the industry through facilitation of Ease of Doing Business. Other suggestions to the MoC were about special economic zones and so on.

MAIT suggested that the Ministry of Finance consider tariff reforms to ensure competitiveness, large-scale manufacturing and exports from India.

The industry body also suggested that the DoT open the window for investment limit enhancement under PLI for telecom. MAIT has also requested DoT to recommend excluding the telecom sector & electronics sector from the applicability of section 65A to make the Manufacturing and Other Operations in Warehouse (MOOWR) scheme optimal for setting up and expanding manufacturing operations in these sectors.