Call Us Now

+91 9606900005 / 04

For Enquiry


Focus: GS-III Indian Economy

Why in news?

Telecom and IT Minister launched three incentive schemes with a total outlay of about ₹48,000 crore to boost large-scale manufacturing of electronics in the country, on 2nd June 2020.

The Three Incentive Schemes to boost Manufacturing of Electronics

The Three Schemes that were approved by the Union Cabinet in March 2020 are:

  1. Production Linked Incentive
  2. Component Manufacturing Scheme
  3. Modified Electronics Manufacturing Clusters

India had emerged as the second largest mobile manufacturer of the world. With the three new schemes, the government aims to manufacture electronics worth ₹8 lakh crore, while generating employment for about 10 lakh people in the next five years.

This is a step towards self-reliant India.

Production Linked Incentive (PLI)

Production Linked Incentive (PLI) is targeted at mobile phone manufacturing and specified electronic components – The government initially plans to incentivise 10 firms — five global and five local firms.

Globally 5-6 companies control 80% of the mobile market, hence five global companies will be allowed to participate in the PLI, and in order for upliftment indigenous firms, five Indian companies will be incentivized as well.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

The SPECS shall provide 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, specialized sub-assemblies and capital goods for manufacture of aforesaid goods. 

Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

The EMC 2.0 shall provide support for 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.

-Source: The Hindu

December 2023