Focus: GS-III Indian Economy
Why in news?
Union Minister for Electronics & IT, Communications said that the Production Linked Incentive Scheme (PLI) has been huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers.
- Production Linked Incentive Scheme (PLI)for Large Scale Electronics Manufacturing extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies.
- Under Mobile Phone (Domestic Companies) Segment, Indian companies have registered and are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
- Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with self-reliant India (AtmaNirbhar Bharat).
- Over the next 5 years, the Scheme is expected to lead to total production of about Rs. 11.5 lakh crores.
- The scheme is expected to promote exports significantly, as more than 60% of the total production in next 5 years will be contributed by exports.
- The scheme will generate approximately 3 lakh direct employment opportunities in next 5 years along with creation of additional indirect employment of nearly 3 times the direct employment.
- With the demand for electronics in India expected to grow manifold by 2025, PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat.
- Creation of domestic champion companies in electronics manufacturing under the Scheme will give fillip to vocal for local while aiming for global scale.