The Ministry of Electronics and IT (MeitY) has confirmed that it will not alter the value-addition target for manufacturers participating in the production-linked incentive (PLI) scheme for mobile devices.
The target remains set at 35-40% value addition by the end of the scheme's duration in 2026-27, as per the initial commitments made by the manufacturers.
The PLI scheme aims to bolster domestic manufacturing and reduce dependency on imports by incentivizing companies to increase local production and value addition in their manufacturing processes.
Mobile device makers are subject to the production-linked incentive (PLI) program; therefore, the value-addition target will remain unchanged, according to the Ministry of Electronics and IT (Meity).
Despite any potential challenges, MeitY's stance indicates a firm commitment to the scheme's objectives, encouraging manufacturers to meet the established goals within the stipulated timeline.
The government set the value-addition target for mobile device manufacturers under the PLI scheme at 35-40%, based on commitments from the industry. Currently, estimates indicate that eligible manufacturers are achieving value addition levels between 15% and 20%.
This gap highlights the challenges manufacturers may face in meeting the targets by the scheme's conclusion in 2026-27, emphasizing the need for strategic efforts to enhance local production capabilities and efficiency.
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