- In March 2020, to boost large-scale electronics manufacturing in India, the Union Cabinet approved three schemes with a total outlay of almost Rs 48,000 crore.
- The three schemes together will enable large-scale electronics manufacturing, a domestic supply chain ecosystem of components and a state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners.
- The schemes are expected to attract new investments worth at least Rs 50,000 crore in the sector, while generating more than five lakh direct and 15 lakh indirect jobs.
News in Detail
- The production-linked incentive scheme aims to attract large investments in mobile phone manufacturing and specified electronic components. The scheme will offer an incentive of 4-6% on incremental sales of goods manufactured in India and is expected to create a total of 8 lakh jobs.
- The ‘Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors’ will give a financial incentive of 25% on capital expenditure for the identified list of electronic goods.
- The third scheme, Electronics Manufacturing Clusters (EMC) 2.0, aims at creating quality infrastructure with a minimum area of 200 acres along with industry-specific facilities such as common facility centres, ready-built factory sheds/ plug-and-play facilities. The scheme is expected to create about 10 lakh jobs.
Why in News?
- The Ministry of Electronics and IT said it had approved 16 proposals by electronics manufacturers, including Samsung, Foxconn, Lava and Micromax, entailing an investment of ₹11,000 crore under its Production Linked Incentive (PLI) Scheme.
- The companies would bring additional investment in electronics manufacturing to the tune of ₹11,000 crore and generate more than two lakh direct employment opportunities in the next five years, along with the creation of additional indirect employment of almost three times the direct employment.