PLI for electronics to achieve US$ 98.72 billion (Rs 8.12 trillion) production target in 5 years: Government
- IBEF
- March 31, 2023
Minister of State for Electronics and Information Technology Mr. Rajeev Chandrasekhar informed that the production-linked incentive (PLI) scheme for large-scale electronics manufacturing is estimated to attain a production target of US$ 98.72 billion (Rs 8.12 trillion) over the next five years. The scheme's cumulative investments have climbed to US$ 623.07 million (Rs 5,124 crore) as of December 2022, up from the previous FY23 objective of US$ 453.08 million (Rs 3,726 crore) is anticipated to attract investments worth US$ 851.19 million (Rs 7,000 crore).
Export orders totalling US$ 59.27 billion (Rs 4,87,530 crore) are estimated to contribute around 60% of the five-year production target of US$ 9.87 billion (Rs 812,55 crore). Based on the data, the current fiscal year's 91% cumulative output target of US$ 31.98 billion (Rs 263,086 crore) has already been met. 90% of the scheme's export goal has been fulfilled with exports worth US$ 12.58 billion (Rs. 103,539 crore) up till December. Moreover, companies have reported the creation of 52,509 jobs.
Under the PLI programme for large-scale electronics manufacturing through December 2022, the government has granted approval to 32 applications. In the first round, 16 businesses were selected, including 6 to produce certain electrical components and 10 for mobile phones. 16 businesses have received approval for the second phase of production of specific electrical components.
For a period of five years, the PLI scheme for large-scale electronics manufacturing offers qualifying firms incentives of 4-6% on incremental sales of goods manufactured in India and covered by the target segments of mobile phones and specified electronic components.
The second round of this PLI scheme was announced in March 2021, with incentives ranging from 3% to 5% on incremental sales of items manufactured in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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