Make in India has been the push of government ever since 2014. However, this time the aim is to target a particular sector. To boost the manufacturing of phones and their equipments at the domestic level the government has come with a massive incentive package.
The new production linked incentive scheme for electronic manufacturing is a welcome step for the industry, says @AMS_Shardul's Rajat Bose. #Budget2020
— BloombergQuint (@BloombergQuint) February 1, 2020
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The government has worked out a production-linked incentive (PLI) package of Rs 42,000. As per the package, those making in India would get a benefit of 4-6% on incremental sales (of goods manufactured locally) for a period of 5 years. The scheme is likely to start in August this year.
Further, the move is expected to generate 2 lakh jobs in the country. iPhone from Apple and the Galaxy S and Note Series by Samsung would be one of the biggest beneficiaries of the scheme. Homegrown players like Lava, Karbonn, Micromax, and Intex would also get the share of benefit from this package.
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The idea is to make India a ‘Global Manufacturing Hub’ like China and Vietnam. The heavy dependence on Chinese imports hurts India’s economy. The dependence has been highlighted by the coronavirus outbreak. More facts about the scheme and India’s electronic manufacturing sector can be read here.
