Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

[pib] Production Linked Incentive Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Production Incentive Scheme (PLI)

Mains level : Various schemes for Industrial promotion

The Union Cabinet has approved the Production Incentive Scheme (PLI) for Large Scale Electronics Manufacturing.

Production Incentive Scheme (PLI)

  • The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units.
  • The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year as defined.
  • The proposed scheme is likely to benefit 5-6 major global players and few domestic champions, in the field of mobile manufacturing and Specified Electronics Components and bring in large scale electronics manufacturing in India.

Benefits

  • The scheme has a direct employment generation potential of over 2,00,000 jobs over 5 years.
  • It would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities.  Indirect employment will be about 3 times of direct employment as per industry estimates.
  • Thus, the total employment potential of the scheme is approximately 8,00,000.
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