Prime Minister Narendra Modi’s ‘Make in India’ programme may have finally got a big push, with the government receiving proposals worth Rs 12 lakh crore from marquee global companies to start manufacturing under the PLI scheme.
Prime Minister Narendra Modi’s ‘Make in India’ programme may have finally got a big push, with the government receiving proposals worth Rs 12 lakh crore from marquee global companies to start manufacturing under the PLI scheme. “… All the top mobile manufacturers and their contract manufacturers have applied in that (PLI) scheme, including five global champions and five national champions,” Union Minister Ravi Shankar Prasad said on Tuesday. Global companies have collectively pledged to make mobile phones and components worth Rs 12 lakh crore in the coming five years, he added. Out of this, Rs 7 lakh crore worth of items will be exported from India.
The move will not only push domestic manufacturing but will also provide 12 lakh direct and indirect jobs, Ravi Shankar Prasad, minister for IT and Communications, said. So far, Apple’s iPhone maker Foxconn and Wistron, global tech giants such as Samsung, and homegrown brands such as Micromax and Lava have applied under the PLI scheme, which aims to boost electronics manufacturing in India.
Global companies have been shifting their bases out of China as a fallout of the coronavirus pandemic, and more and more companies are looking to establish their manufacturing units in other South Asian countries, India being one of them. In fact, around eight or nine manufacturing lines have already moved from China to India during the Covid-19 pandemic.
What is the PLI scheme?
On 1st April 2020, the government notified three schemes aimed at promotion of electronics. PLI or production-linked incentive scheme was one of them to boost large scale electronics manufacturing. Other two schemes for manufacturing of electronic components and semiconductors, and modified electronics manufacturing clusters (EMC 2.0) scheme. These schemes jointly offer incentives of around Rs 50,000 crore over the period of next five years.
Meanwhile, electronics major Samsung alone is mulling to produce mobile phones worth Rs 3.7 lakh crore in India over the next five years, PTI reported government sources as saying. Samsung will manufacture smartphones worth Rs 2.2 lakh crore, priced above Rs 15,000 per unit, under the government’s production-linked incentive (PLI) scheme.