Union Minister for Electronics and IT Ravi Shankar Prasad on Tuesday launched three major schemes to boost manufacture of electronics in the country.
These schemes are expected to attract substantial investments, increase production of mobile phones and their parts or components to around Rs 10 lakh crore by 2025, and generate around 5 lakh direct and 15 lakh indirect jobs, said the statement.
The Minister launched the 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, which were approved by the Union Cabinet in March.
The PLI Scheme will extend an incentive of 4-6% on incremental sales of goods manufactured in India and covered under the target segments to the eligible companies for five years subsequent to the base year, said an official statement.
On the other hand, the SPECS will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods, including electronic components, semiconductor, and display fabrication units, among others.
The EMC 2.0 will provide support for the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds or Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.
The government aims to increase the domestic value addition for mobile phones by 35-40% by 2025, Prasad said.
The three schemes would entail an outlay of about Rs 50,000 crore.
According to the government, the schemes will help offset the disability for domestic electronics manufacturing and hence strengthen the electronics manufacturing ecosystem in the country.