Govt Approves PLI for Electronics Components; Industry Applauds
In a significant move to boost the ‘Make in India’ initiative and strengthen manufacturing, the Union Cabinet has approved a ₹22,919 crore Production-Linked Incentive (PLI) scheme for electronics components. The scheme is expected to drive innovation, job creation, and make India a global hub for electronics manufacturing.
The PLI scheme, announced by the Centre, will provide financial incentives to companies that manufacture electronics components in India. The scheme aims to promote domestic production and reduce dependence on imports. The approval of the scheme is seen as a major boost to the electronics industry, which has been growing steadily over the years.
Industry associations and companies have welcomed the move, terming it as a positive step towards developing India’s electronics sector. The Indian Electronics and Semiconductor Association (IESA), the Federation of Associations of IT and ITES (FAIITA), and companies like HCL have expressed their support for the scheme.
“The PLI scheme will provide a significant fillip to the electronics industry, which is a critical sector for the country’s economic growth,” said Pankaj Mohindroo, Chairman of IESA. “We expect the scheme to create new employment opportunities, drive innovation, and increase the competitiveness of Indian companies in the global market.”
The scheme is expected to benefit companies that manufacture a wide range of electronics components, including printed circuit boards, connectors, switches, and capacitors. The incentives will be provided to companies that meet specific targets, including increasing their production and exports.
The PLI scheme is part of the government’s efforts to promote ‘Make in India’, which aims to increase the country’s production share in the global market. The scheme is also expected to attract foreign investment and create new opportunities for Indian companies to participate in global supply chains.
The electronics industry is a significant contributor to India’s economy, accounting for around 2.5% of the country’s GDP. The industry has been growing steadily over the years, driven by increasing demand for electronic products and government initiatives to promote manufacturing.
In recent years, India has emerged as a major hub for electronics manufacturing, with companies like Foxconn, Wistron, and Flex setting up manufacturing facilities in the country. The government’s initiatives, including the PLI scheme, are expected to further boost the industry’s growth.
The PLI scheme is expected to have a positive impact on the economy, creating new employment opportunities and increasing the competitiveness of Indian companies. The scheme is also expected to reduce dependence on imports, which can help to improve the country’s trade balance.
In conclusion, the approval of the PLI scheme for electronics components is a significant move that is expected to boost the ‘Make in India’ initiative and strengthen manufacturing. The scheme is expected to drive innovation, job creation, and make India a global hub for electronics manufacturing.
