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Business News/ News / India/  Centre may extend PLI to laptop and tab manufacturing
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Centre may extend PLI to laptop and tab manufacturing

The need for local manufacturing arose with the pandemic, which showed India’s huge dependency on imports

Union minister Ravi Shankar Prasad (Mint)Premium
Union minister Ravi Shankar Prasad (Mint)

The government plans to extend the production-linked incentive scheme to domestic manufacturing of essential electronic gadgets such as laptops and tablets, following the success of a scheme to locally produce mobile phones and their components, communications, electronics and information technology minister Ravi Shankar Prasad said on Monday.

“Now, my focus is that India emerges as a big centre for manufacturing of other important electronic gadgets, which have become integral to our day-to-day existence, that is from laptops to tablets and servers," said Prasad at the annual general meeting of industry body Ficci.

Sixteen global and domestic mobile phone and electronic component makers including Samsung, Foxconn and Bhagwati Products—the maker of Micromax phones—received the Centre’s approval for the PLI scheme that was launched in April to boost local manufacturing.

The other eligible international phone makers are Rising Star, Wistron and Pegatron. Except for Samsung, the other foreign companies are contract manufacturers for Apple Inc. Samsung and Apple together account for nearly 60% of global revenue for mobiles.

The need for local manufacturing arose with the pandemic, which showed India’s huge dependency on imported goods.

Tensions between India and China in June added to this crisis. Since then, India has banned more than 200 Chinese apps citing national security concerns, even as it continues to encourage the use of locally-developed apps.

Under the PLI scheme for mobile phones, the government will give 4-6% incentive to eligible electronic companies on incremental sales of manufactured goods—mobile phones and electronic components such as printed circuit boards and sensors, among others—for five years.

The base year is 2019-20 and the incentives are applicable from 1 August.

Over five years, the scheme is expected to result in production worth 10.5 trillion, of which more than 60% will be contributed by exports.

The scheme is expected to garner additional investment of as much as 11,000 crore and create 300,000 direct jobs.

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Updated: 14 Dec 2020, 10:56 PM IST
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