A major step towards ‘Atmanirbhar Bharat‘ seems to be taken as the Indian Government shortlists sixteen top international and domestic electronic and mobile phone manufacturers. The list of company includes Samsung, Foxconn and Bhagwati Products (maker of Micromax phones) are eligible for India’s PLI Scheme. This initiative is a big boost to Make In India according to sources.
The other global phone makers who are chosen are – Rising Star, Pegatron, and Wistron. Except for Samsung, all the international companies are contract manufacturers for Apple Inc who were selected under India’s PLI Scheme.
What is India’s PLI Scheme?
Under the Government’s Production-Linked (PLI) Scheme, the companies will receive an offer 4-6% incentive to the electronic and mobile phone manufacturing companies on the incremental sales of the manufactured products for five years. These products are —Mobile phones, Electronic Appliances, Equipment, Printed Circuit Boards and Sensors, and others. The base year is 2019 to 2020, and the incentives will be taken into consideration from 1st August.
India’s PLI Scheme – What are the parameters?
Under the India’s PLI Scheme, the mobile phones that are priced at 15,000 INR and above, must secure a total global manufacturing revenue more than 10,000 crore INR during the base year. Under the India’s Production-Linked Incentive Scheme, domestic handset manufacturers will have to achieve a target of total manufacturing revenue of more than 100 crore INR during the base year.
According to sources – The domestic mobile phone manufacturers include Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics. MeitY approves these firms. Six other companies are approved under the India’s PLI Scheme for production of specific electronic components; these organizations are – AT&S, Ascent Circuits, Walsin, Visicon, Sahasra and Neolync.
What’s Indian Government is saying on India’s Product-Linked Incentive Scheme ?
As per the Minister of Electronics and Information Technology, Mr. Ravi Shankar Prasad, the India’s Product-Linked Incentive Scheme has achieved it’s objective with regards to receiving applications from both domestic and global mobile phone and electronic parts manufacturing firms. He also added that such a scheme would boost India’s Mobile Phone and Electronics manufacturing ecosystem.
The Government’s Production-Linked Incentive (PLI) Scheme is expected to achieve a figure of 10.5 trillion INR. 60% of this amount will be accounted for exports by India. The India’s PLI Scheme is also expected to bring an investment of 1,000 crore INR additionally. This will expect to lead to the creation of and 300,000 direct jobs as per sources. India’s Product-Linked Incentive Scheme is expected to disburse 5,334 crore INR over five years.
My Opinion on India’s PLI Scheme
Well, I will reserve my judgement on the success of the program, as full-fledged work is yet to happen on this. The start is good, and the Government’s Production-Linked Incentive (PLI) Scheme seems promising. This will surely boost indigenous manufacturing and help us in becoming ‘Atmanirbhar.’ But facts and results are the ultimate kings, so let’s hope for the best and wait for some more time.