Telecommunications and IT Minister Ravi Shankar Prasad on Monday has announced to expand India’s production-linked incentive (PLI) scheme that would not only lever India’s position in the Mobile manufacturing sector but also attract worldwide investors to invest in mobile phones and other electronic device manufacturing hubs gradually.
“We wanted India to become the second-largest mobile manufacturer in the world. Now I am pushing India to surpass China. That’s my goal and I am very clearly defining it,” Prasad said at the general meeting of industry chamber FICCI.
The National Policy on Electronics 2019 (NPE) expects the electronic manufacturing turnover of more than Rs 26 trillion by five years now, out of which the mobile production hub may produce a turnover of Rs 13 trillion.
“PLI is designed to enable global champion companies to come to India and make Indian companies’ national champion,” he said.
The new PLI scheme under the leadership of Prime Minister Narendra Modi makes companies eligible for a standing order of Rs 48,000 crore. The government has already sanctioned 16 proposals in which investors have indicated a total output of Rs 11,000 crore in 5 years out of which Rs 7,000 crore of production is for exports and Rs 4,500 crore for the domestic market. The PLI scheme has estimated to manufacture mobile phones worth Rs 10.5 trillion by 2025 with Apple and Samsung leading in global investors.
The PLI scheme has announced to provide incentives to Domestic manufacturers such as Dixon Technologies and Micromax manufacturing mobile phones in India priced at less than Rs 15,000. Global mobile phone manufacturers that are eligible to avail incentive for producing mobile phones with a minimum value of Rs 15,000 and above are Samsung, Foxconn units Hon Hai and Rising Star, Wistron , and Pegatron.