Production Linked Incentive Scheme | UPSC
PLI Scheme to herald a new era in mobile phone and electronic components manufacturing
WHY IN NEWS:
Production of Rs. 11.50 lakh crore and Exports of Rs. 7 lakh crore expected over next 5 years : Shri Ravi Shankar Prasad
SYLLABUS COVERED: GS 3 : Scheme
For PRELIMS go through aim and significance of this schemes . Do not forget the ministry .
For MAINS nothing much here .
PRODUCTION LINKED INCENTIVE SCHEME (PLI)
- Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 1st April, 2020.
- The scheme was open for filing applications till 31.07.2020.
- Incentives are applicable under the scheme from 01.08.2020.
- These goods are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
- The international mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value INR 15,000 and above) Segment are Samsung, Foxcon Hon Hai, Rising Star, Wistron and Pegatron.
- Out of these, 3 companies namely Foxcon Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
- Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones
- Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied under the scheme.
- The scheme will generate approximately 3 lakh direct employment opportunities in next 5 years.
- Additional indirect employment will be nearly 3 times the direct employment.
- PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat.
- Creation of domestic champion companies in electronics manufacturing under the Scheme will give fillip to vocal for local while aiming for global scale.
- Thus, grow into national champion companies in mobile phone production.
- 10 companies have filed applications under the Specified Electronic Components Segment .
- Out of the total production, companies under Mobile Phone (Invoice Value INR 15,000 and above) segment have proposed a production of over INR 9,00,000 crore.
- The companies under Mobile Phone (Domestic Companies) segment have proposed a production of about INR 2,00,000 crore .
- Those under Specified Electronic Components segment have proposed a production of over INR 45,000 crore.
- The scheme is expected to promote exports significantly.
- Out of the total production of INR 11,50,000 crore in the next 5 years, more than 60% will be contributed by exports of the order of INR 7,00,000 crore.
- The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM).
- This is possible by focusing on size and scale promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally.