Wednesday, May 12, 2021
Home News Reports Union govt unveils three schemes worth Rs 50,000 crore to make India self-reliant in...

Union govt unveils three schemes worth Rs 50,000 crore to make India self-reliant in electronics manufacturing

The Union Minister also said the government will pick up "five global champions" who will be permitted to participate under the PLI scheme. Five Indian companies will also be added in the scheme.

To give a fillip to the electronics manufacturing sector in the country, the Modi government on Tuesday urged the firms to apply for schemes to promote electronic manufacturing in India to help them become global champions.

The Ministry of Electronics & IT government had announced three schemes in April – Production linked Incentive (PLI), component manufacturing schemes (SPECS) and cluster schemes (EMC 2.0) in an aim to increase electronics manufacturing rapidly by 2025 and create additional 1.5-2 million new jobs in the short term.

Reiterating the same, the Union IT minister Ravi Shankar Prasad released detailed guidelines about the three new initiatives of the government and asked companies to start applying for the schemes to avail the benefit.

The total value announced today stands at Rs 50,000 crore with the goal of increasing production to $106 billion from $70 billion in 2018-19. The target for exports of electronic components is $77 billion.

The Union Minister also said the government will pick up “five global champions” who will be permitted to participate under the PLI scheme. Five Indian companies will also be added in the scheme.

Three schemes to boost electronics manufacturing in the country

Under the Production linked Incentive scheme, the government will provide an incentive of 4-6 per cent on incremental sales of goods manufactured in the country up to 2025. The PLI scheme takes the largest portion of the benefits, standing at approximately Rs 40,000 crore and is expected to help large scale manufacturing of mobile and other gadgets.

The second scheme – Scheme for Promotion of Manufacturing of Components and Semiconductors (SPECS), is aimed at promoting component manufacturing in India. The scheme intends to reduce imports of electronic components, which the industry currently undertakes to assemble products here. The government will provide a financial incentive of 25% on capital expenditure for a list of electronic goods, which include electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of these products. 

The scheme will remain open for three years for investors to apply and for five years for investments. The outlay for the scheme amounts to Rs 3,285 crore.

Lastly, the Electronics Manufacturing Cluster Scheme (EMC 2.0) project will provide land for large manufacturing clusters, and other infrastructure requirements. The scheme is a modified version of the earlier EMC scheme. The 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, the ministry statement says.

Focus on mobile manufacturing in India

The Union Minister Prasad also added that electronics manufacturing in the country was valued at Rs 1,90,366 crore in 2014, which has seen a rise to Rs 4,58,000 crore today, while its share in global manufacturing has risen to 3% in 2018 from 1.3% in 2012. The minister also added that th exports grew by 38% year-on-year between 2018 and 2019.

“India is now a second-biggest mobile manufacturing country in the world. From just 2 factories, we now have 200 manufacturing units,” added Prasad, the Union minister for electronics and IT.

The Modi government wants India to be a mobile manufacturing hub and intends to make the country to become the largest exported item from India and domestic value addition of 35-40% to mobile manufacturing by 2025.

The new scheme announced by the Modi government is meant to help mobile manufacturing in a big way. However, the government also want to boost other sectors like automobile electronics, medical electronics, strategic electronics like defence, which will have a bearing from the development of electronics manufacturing in the country.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staff
Staff reporter at OpIndia

Related Articles

Trending now

Here are 12 instances when the leftist media fanned fear against vaccines just before the second Covid wave

Leftist propaganda websites hosted articles that raised doubts about Indian vaccines, thereby fuelling vaccine hesitancy in the months leading to the resurgent coronavirus outbreak.

Israel’s ‘Iron Dome’ Air Defence System: What is it and how does it work

To counter the low-cost warfare initiated by Hamas, the Israel Defence Forces has activated its state-of-art air defence system - 'Iron Dome' to protect its civilian population from the barrage of rockets.

‘No commode’ claims Pappu Yadav who is in jail for flouting COVID norms, complaints of mosquitoes biting him all night

Fearing that Pappu Yadav might become more popular and become a hero-like figure, RJD leaders are condemning this as 'drama'.

Israeli forces kill Islamic Jihad and Hamas leaders in targeted strikes amid increased tension between Israel and Palestine

Two top Hamas leaders, three Islamic Jihad terrorists killed, several injured in targeted strikes by Israel Defence Forces

Congress leader Ali Mehdi wishes the destruction of Israel hours after terror outfit Hamas launches massive air strikes against Jewish nation

Delhi Congress VP's tweet wishing destruction of Israel comes at a time after the Jewish nation came under attack by the Palestinian terror organisation Hamas

Kerala nurse killed after terror group Hamas launches rocket attack in Israel

he Kerala nurse Soumya Santosh was on the phone with her husband when the rocket hit the apartment she was in. The wheel-chair bound lady who Soumya was taking care of was also killed during the attack.

Recently Popular

Israel spy agency Mossad’s parody account pokes fun at Bollywood entertainer Swara Bhasker over her ‘#FreePalestine’ campaign

Swara Bhasker had posted a tweet calling Israel apartheid and terrorist state following the clashes at the Al Aqsa Mosque in Jerusalem

As Netizens trend #ArrestMunmunDutta, the actor apologises, says she was misinformed and did not intend to use casteist slur: Details

Actor Munmun Dutta, most famously known for playing the character of 'Babita Ji in 'Taarak Mehta ka Ooltah Chasmah', today posted a statement on Twitter, apologising

NCP supremo Sharad Pawar believes he committed a big mistake by making Uddhav Thackeray the CM of Maharashtra: Report

A report published in Marathi daily Tarun Bharat said that Sharad Pawar conveyed to Sanjay Raut that he made a big mistake by making Uddhav Thackeray the chief minister of Maharashtra.

Watch: Israel’s Iron Dome intercepts hundreds of rockets launched by the Palestinian terror group Hamas

The high-tech 'Iron Dome' is a short-range air-defence system designed to intercept rockets, artillery, and mortars. The surface-to-air missile system has been deployed by Israel Defence Forces since 2011 and has helped reduce casualties from rocket attacks against Israeli cities.

BMC chief explains why it is not the Modi govt but the states that need to be blamed for the oxygen crisis

BMC chief said that mismanagement of states is responsible for the oxygen crisis and increased number of SOS calls

Cartoonist gets Twitter notice for a caricature of Maharashtra CM Uddhav Thackeray: Details

The cartoonist took to Twitter to share the copy of the notice he received from the legal department of the microblogging website.
- Advertisement -


Connect with us