Production Linked Incentive Scheme | UPSC

Production Linked Incentive Scheme | UPSC

      HEADLINES:

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

      LEARNING: 

For PRELIMS go through aim and significance of this schemes . Do not forget the ministry .

For MAINS nothing much here .

      CONTEXT: 

LAUNCH

• Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was notified on 1^st April, 2020.
• The scheme was open for filing applications till 31.07.2020.
• Incentives are applicable under the scheme from 01.08.2020.

AIM

• These goods are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).

PARTICIPANTS

• 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.

SIGNIFICANCE

• 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.

FEATURES

• 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.

      IASbhai WINDUP: 

• 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.

     SOURCES:THE HINDU & PIB | Production Linked Incentive Scheme | UPSC

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