The Union Cabinet on March 21, 2020 approved the Production Incentive Scheme (PLI) for Large Scale Electronics Manufacturing.
The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units.
Facts: The Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year as defined.
Benefits: The proposed scheme is likely to benefit 5-6 major global players and few domestic champions, in the field of mobile manufacturing and Specified Electronics Components and bring in large scale electronics manufacturing in India.
Financial Implications: The total cost of the proposed scheme is approximately INR 40,995 crore (Rupees Forty Thousand Nine Hundred and Ninety-Five Crore Only) which includes an incentive outlay of approximately INR 40,951 crore (Rupees Forty Thousand Nine Hundred and Fifty-one Crore Only) and administrative expenses to the tune of INR 44 crore (Rupees Forty-Four Crore Only).
Greater Benefits
The scheme has a direct employment generation potential of over 2,00,000 jobs over 5 years. However, it is expected that the scheme would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities.
Indirect employment will be about 3 times of direct employment as per industry estimates.
Thus, total employment potential of the scheme is approximately 8,00,000.
