Electronics manufacturers propose production worth ₹11.5 lakh cr, 12 lakh jobs: Ravi Shankar Prasad
IT Minister also announced that proposals submitted by the companies to the ministry will generate upto 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs.
PremiumUnion IT Minister Ravi Shankar Prasad on Saturday announced that electronic manufacturers including Pegatron, Samsung, Lava and Dixon have proposed to produce mobile devices and components of over ₹11 lakh crore in the next five years under the government's new Production Link Incentives (PLI) scheme to boost electronics manufacturing.
A total of 22 companies have filed their application under the PLI Scheme, including five international brands - Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. "The international mobile phone manufacturing companies have applied only in ₹15,000 and above segment," Ravi Shankar Prasad said.
Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
IT Minister also announced that proposals submitted by the companies to the ministry will generate upto 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs.
"Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in case of Mobile Phones and 45-50% for electronic components," Minister said.
What is Production Linked Incentive Scheme?
The PLI scheme extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
The scheme was open for filing applications till 31.07.2020. Incentives are applicable under the scheme from 01.08.2020.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
