Make in India gets a ₹42,000 crore boost from govt for domestic manufacturing of mobiles

Government of Indian has come up with a new production-linked incentive (PLI) pack of nearly ₹42,000 crores for those manufacturers who make in India. This is one of biggest incentive schemes from government which will help boost domestic manufacturing of mobile phones and or such components. scheme is part of 'Make in India' movement which was launched by Government of India on September 25, 2014, to encour companies to manufacture ir products in country.

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government has plans to offer se manufacturers a benefit of 4-6% on incremental sales for those goods that have been manufactured locally. benefit will be given for a period of five years. According to FDI policy circular of 2017, incentives will be offered to large number of manufacturers on sale of mobile phones that carry an invoice value of $200 (₹14,580 approx.).

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incentive scheme will certainly prove to be a beneficial one for companies like Apple and Samsung, who are kwn to make and sell high-end mobile phones and or devices. Indian mobile phone brands like Lava, Karbonn, Micromax, and Intex would also be biggest beneficiaries of this scheme.

PLI Scheme aims at making India a manufacturing hub

new PLI incentive scheme was devised in consultation with Ministries of Finance and Commerce along with Niti Aayog and will be launched by Ministry of Electronics and Information Techlogy. According to a source, scheme aims to help country become one of biggest manufacturing powerhouses like China and Vietnam.

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A source close to IT Ministry has stated that electronics hardware manufacturing sector is faced with a lack of level-playing field with regards to competing countries and also suffers from a disability of around 8.5% to 11% in terms of lack of required infrastructural facilities, domestic supply chain and logistics, high financial cost, limited availability of quality labour, limited design capabilities, low focus on R&D and lack of skill development.

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Im credits: Unsplash | Robin Worrall