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.
