The centre is reportedly planning to launch a production-linked incentive (PLI) scheme to promote domestic production of high-end smartphone components and other IT hardware in India. The scheme is expected to be worth around Rs 10,000 - 12,000 crore and will help develop a complete ecosystem of electronics manufacturing in India.
This ecosystem will help attract global tech giants such as Apple to the country. The PLI scheme will also enable tech companies based in Asian hubs such as Japan, Taiwan and Korea to migrate their manufacturing units towards India.
An official was quoted as saying, “The scheme may offer incentives on the production of components as well as capital support for setting up production facilities. The final contours of the scheme are still to be finalised, but we are aiming to come out (with the policy) by next financial year (April 2024).”
The development comes ahead of the Rs 3,285 crore scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS) coming to an end in March 2023. It was launched in 2020 for three years with the PLI scheme for smartphones.
SPECS was aimed at promoting the manufacturing of high-value-added items like electronic components like touch panels and camera modules. The industry has been demanding that SPECS be extended for another five years with an outlay of at least Rs 10,000 crore.
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