The Centre may soon launch a production-linked incentive (PLI) scheme for the high-end components for electronic products like smartphones, servers and computers with an outlay of Rs 10,000-12,000 crore.
The move, which may attract global giants like Apple to enhance production in the country, is being discussed to develop a complete ecosystem for electronic manufacturing in India.
“The scheme may offer incentives on the production of components as well as capital support for setting up production facilities. The final contours of the scheme are still to be finalised, but we are aiming to come out (with the policy) by next financial year (starting April 1),” said an official aware of the matter.
The PLI scheme will help companies located in Taiwan, Korea and Japan to migrate to India or set up new units here.
The development comes ahead of the Rs 3,285 crore scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS) coming to an end in March 2023. It was launched in April 2020 for three years with the PLI scheme for smartphones. SPECS was aimed at promoting the manufacturing of high-value-added items like electronic components like touch panels and camera modules.
The industry has been demanding that SPECS be extended for another five years with an outlay of at least Rs 10,000 crore.
The Indian Cellular and Electronics Association (ICEA) recently said that the dependence of countries on China for the import of finished products is possible only if there are tier-2 and tier-3 manufacturers in India.
Discussion about this post