India Announces Rs.50,000 Crore Schemes to Attract Electronics Companies

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India Announces Rs.50,000 Crore Schemes to Attract Electronics Companies
India’s Union Minister for Electronics & Information Technology Ravi Shankar Prasad has introduced three new electronics manufacturing pointers. These pointers are geared toward boosting native manufacturing and attracting international investments. The authorities says these three schemes will account for Rs. 50,000 crores or roughly $7 billion.

The schemes in query are:

  • Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing
  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
  • Modified Electronics Manufacturing Clusters (EMC 2.0).

“The three new Schemes are expected to attract substantial investments, increase production of mobile phones and their parts/ components to around Rs.10,00,000 crore by 2025 and generate around 5 lakh direct and 15 lakh indirect jobs.”, reads the official press launch.

As a part of the PLI scheme, the federal government will present an incentive of 4 % to 6 % on incremental gross sales of products manufactured in India for a interval of 5 years subsequent to the bottom yr.

Through SPECS, India goals to offer as much as 25 % incentive on capital expenditure for digital parts, semiconductor/show fabrication models. In addition, the scheme facilitates the manufacturing of Ready Built Factory (RBF) sheds and Plug & Play services for making certain seamless deployment.

Initially, the authorities will select 5 world and 5 Indian smartphone manufacturers for this initiative. While the names can be introduced within the subsequent couple of months, we may count on Apple to be one in every of them.

Speaking of the initiative, Niti Aayog CEO Amitabh Kant stated, “The schemes will help India become totally self-reliant and penetrate global markets. It will bring global value chain and enable India to become a leader in electronics manufacturing.”

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