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IT Ministry launches 3 new schemes to make India a global mobile manufacturing powerhouse

The three new Schemes are expected to attract substantial investments, increase the production of mobile phones and their parts/ components

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Voice&Data Bureau
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ICEA felt confident that the formal institution of the PLI scheme will greatly hasten up this process and fulfil the Prime Minister’s Vision

The broad plan is to make India a major country of the world with appropriate technology, capital including FDI having extraordinary human resources contributing significantly to the global economy and aligning it with the global electronics supply chain, said Ravi Shankar Prasad, Union Minister of Communications and Information Technology at a press conference in Delhi this morning.

CHAMPIONS to success: 

On June 1st, Prime Minister Narendra Modi launched the technology platform.

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CHAMPIONS, which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength.
As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.
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It is a one-stop-shop solution of MSME Ministry. This ICT based system is set up to help the MSMEs in present difficult situation and also to handhold them to become national and international champions.
Three new schemes for turning India into electronics manufacturing hub
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Prime Minister Narendra Modi has given a clarion call for Aatma Nirbhar Bharat - a self-reliant India.  Minister of Electronics and IT Ravi Shankar Prasad believes that Indian national CHAMPIONS along with international Champions will collaborate to make way for India to be a global manufacturing hub of the world.
The promotion of electronics manufacturing has been a key component of Make in India program. With efforts such as the National Policy on Electronics, 2019, Modified Special Incentive Scheme (MSIPS), Electronics Manufacturing Clusters and Electronics Development Fund etc., India’s production of electronics grew from USD 29 billion in 2014 to USD 70 billion in 2019.
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The growth in mobile phone manufacturing especially witnessed high numbers during this period. From just 2 mobile phone factories in 2014, India now has become the 2nd largest mobile phone producer in the world.Production of mobile handsets in 2018-19 has reached 29 crore units worth Rs. 1.70 Lakh crore from just 6 crore units worth Rs. 19,000 crore in 2014. While the exports of electronics has increased from Rs. 38,263 crore in 2014-15 to Rs. 61,908 crore in 2018-19, India’s share in global electronics production has reached 3% in 2018 from just 1.3% in 2012.
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With a view to building a robust manufacturing ecosystem that will be an asset to the global economy the Ministry launched three new path-breaking schemes that aim at developing a strong eco-system across the value chain and integrating it with global value chains.

The three schemes are:

(i) Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing: The PLI Scheme will extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.

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(ii) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): The SPECS shall provide a 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.

(iii) Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme:  The EMC 2.0 will provide support for the 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.

The Minister, while addressing the press said that the triology of Schemes entail an outlay of about Rs. 50,000 crore(approximately USD 7 billion).

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The schemes are expected to help offset the disability for domestic electronics manufacturing and hence, strengthen the electronics manufacturing ecosystem in the country. The three Schemes together will enable large scale electronics manufacturing, the domestic supply chain of components and state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners.

The combined contours of the schemes are expected to contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

The three new schemes are expected to attract substantial investments, increase the production of mobile phones and their parts/ components to around Rs.10,00,000 crore by 2025, and generate around 5 lakh direct and 15 lakh indirect jobs.

The government, headed by Prime Minister Narendra Modi, has always believed in transformative programs, be it Digital India, Make in India, and Startup India. These initiatives have empowered ordinary Indians, led to digital inclusion, encouraged innovation and entrepreneurship, and raised the stature of India as a global digital power.

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