The schemes are expected to create large scale electronics manufacturing in the country and open tremendous employment opportunities.
Under Make in India and Assemble in India campaigns, the ballooning electronics manufacturing sector has received an additional boost from the government. The Ministry of Electronics and Information Technology has notified the three schemes to grow electronics manufacturing in the country. The schemes that altogether offer incentives of nearly Rs 48,000 crore, were cleared by the cabinet last month. These include the promotion of manufacturing of electronic components and semiconductors, Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, and Production Linked Incentive Scheme for large scale electronics manufacturing. The government’s notification states that the incentives for these schemes will be rolled out from 1st August and will initially be open for four months.
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The largest portion of the incentives, Rs 40,000 crore, will be allocated to the production-linked incentive scheme. “The PLI scheme shall extend an incentive of 4% to 6% on incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined,” the cabinet had said. This scheme will be initially rolled out for mobile phones and specified electronic components.
Source: Financial Express
