Clipped from: https://www.thehindubusinessline.com
To give incentives to top 5 global, Indian companies initially
The government on Tuesday launched the Electronics Manufacturing Scheme 2.0 to give a fillip to the sector in manufacturing not only for India but also for global markets. Under the scheme, incentives will be given to the top five global and Indian companies, initially.
“Initially, five global champions and five Indian companies will be selected. We are keen that our own mobile companies become globally competitive, professionally powerful and are the flag-bearers of the tricolour,” Ravi Shankar Prasad, Minister of Electronics and Information Technology (MeitY), told presspersons here.
However, he also said every company has to follow the guidelines publicised on its website, and will be given incentives accordingly.
“There are norms in the guidelines, such as the company turnover, the quality of their mobiles, etc…there is a proper transparent system in place in the guidelines, whereby, the selection norms will be followed,” Prasad said.
With a view to building a robust manufacturing ecosystem, the government has introduced three schemes — Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing; Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS); and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
“There is going be a big surge in mobile manufacturing globally, so we are trying to raise domestic value addition to 35-40 per cent by 2025. And, in consultation with industry, we hope to generate employment potential of 15-20 lakh people — direct and indirect,” Prasad added.
With efforts such as the National Policy on Electronics, 2019, Modified Special Incentive Scheme (MSIPS), Electronics Manufacturing Clusters and Electronics Development Fund, India’s electronics production grew from $29 billion in 2014 to $70 billion in 2019, MeitY said.
Production of mobile handsets in 2018-19 touched 29 crore units worth Rs 1.70 lakh crore, from just six-crore units worth Rs 19,000 crore in 2014, it said.
While exports of electronics have increased from Rs 38,263 crore in 2014-15 to Rs 61,908 crore in 2018-19, India’s share in global electronics production touched three per cent in 2018, from just 1.3 per cent in 2012, it added.Published on June 02, 2020