PLI scheme for wearable devices by April 2022

By: |
August 22, 2021 5:30 AM

“We are holding consultations with the industry regarding the PLI scheme. The outlay for the scheme will be decided based on the level of manufacturing commitment by the companies. We want to achieve manufacturing to the tune of $15-$20 billion for the next four-five years,” said an official.

The ministry of electronics and IT (Meity) has already launched two PLI schemes -– one for smartphones and another for laptops, tablets, servers and all-in-one PCs. If everything goes as per plan, the PLI for wearables will be notified by April 1 next year.The ministry of electronics and IT (Meity) has already launched two PLI schemes -– one for smartphones and another for laptops, tablets, servers and all-in-one PCs. If everything goes as per plan, the PLI for wearables will be notified by April 1 next year.

The government plans to come up with a production linked incentive (PLI) scheme for wearable/hearable devices in the coming months. The aim is that the country should develop capacity for manufacturing around 25% of the global output. Officials say the wearables segment is growing at an exponential rate and currently, the size of the global market is $25-$30 billion. But over the next four-five years, the market for wearables/hearables will grow to $80-$85 billion and India should target to manufacture $15-$20 billion worth of products by then.

“We are holding consultations with the industry regarding the PLI scheme. The outlay for the scheme will be decided based on the level of manufacturing commitment by the companies. We want to achieve manufacturing to the tune of $15-$20 billion for the next four-five years,” said an official.

The ministry of electronics and IT (Meity) has already launched two PLI schemes -– one for smartphones and another for laptops, tablets, servers and all-in-one PCs. If everything goes as per plan, the PLI for wearables will be notified by April 1 next year.

The industry is demanding incentives in the range of 7% to 8%, given the fact that the segment is quite nascent and it would take some time for the ecosystem to mature. Currently, the supply chain is situated in US and China, and if the government moves fast, India can easily shift the supply chain here. Also, as India has already imposed an import duty of 20% on the segment, manufacturing in India really offers a lucrative chance for the companies in the segment.

Currently, the market for wearables is dominated by Apple, with Apple watch and Airpods enjoying the major share. In India, many local brands have emerged in the segment like Boat, Noise etc.

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