On 2nd June, Union Electronics Minister Ravi Shankar Prasad unveiled three schemes to boost Electronics manufacturing in India. These three schemes are Production Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. The schemes are worth Rs 50,000 crores.
While launching the scheme Electronics Minister mentioned the correct meaning of Self Reliant India i.e. Atma Nirbhar Bharat. He said that – Self-reliant India does not mean India in Isolation, it is also not an India of inward-looking but It is an India that enhances its capacity and capability, develops an ecosystem as a robust asset to the global economy.
He mentioned about the achievement of India in the Electronics sector manufacturing :
- In 2014, the electronics manufacturing in India was worth of Rs 1,90,366 crores. It has increased to Rs 4,58,000 crore.
- India’s global share in electronics manufacturing has increased from 1.3% in 2012 to 3% in 2018.
- From just 2 factories, we now have 200 manufacturing units
- India has emerged as the 2nd biggest mobile manufacturing country in the world. (India accounts for 11 percent of global mobile production, which is much higher than the 3 percent back in 2014— data of 2018)
- The exports of electronics have increased from Rs. 38,263 crore in 2014-15 to Rs. 61,908 crore in 2018-19
So, all these data are depicting that Electronics manufacturing in India is helping to boost the ‘Make in India’ initiative of the govt.
he also said that these modest successes give a sense of hope to become the biggest mobile manufacturer in the world.
So, to boost electronics manufacturing in India, the Electronics minister launched three schemes.
All the three schemes are going to implement from today itself i.e from 2nd June 2020.
Now, let’s look into the three schemes unveiled by Electronics Minister Ravi Shankar to boost Electronics Manufacturing:
Production Linked Incentive Scheme (PLI)
The scheme is all about the – Increase incremental production, and earn the incentive.
The Production Linked Incentive Scheme shall extend an incentive of 4% to 6% on incremental sales (over the base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.
The apex body of IT manufacturers, Manufacturers Association for Information Technology (MAIT) welcomed the government’s announcement. Nitin Kunkolienker, President-MAIT said that the scheme will boost local handset production but at the same time he urged the government to extend the PLI scheme to other electronics.
He also said that this scheme will not only spur manufacturing but will make India an export-led global manufacturing hub for mobile phones.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
The SPECS scheme is for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) will provide incentive of 25% on the capital expenditure.
The SPECS scheme would provide the financial incentive of 25% on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, etc.
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
The scheme focuses on the idea ‘ when companies come to India, they should come with their ancillaries. (As Electronics Minister mentioned – जब दूल्हा आए तो बाराती भी साथ में आए 😂😂😂😂 )
The scheme EMC 2.0 shall provide support for the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.