Make In India Gets A ₹42,000 Crore Boost From Govt For Domestic Manufacturing Of Mobiles


The Indian government has planned a boost of ₹42,000 crores for domestic mobile manufacturing as part of the 'Make in India' movement. Read on for details.

Written By Danish Ansari | Mumbai | Updated On:
Make in India

The Government of Indian has come up with a new production-linked incentive (PLI) package of nearly ₹42,000 crores for those manufacturers who make in India. This is one of the biggest incentive schemes from the government which will help boost domestic manufacturing of mobile phones and other such components. The scheme is part of the 'Make in India' movement which was launched by the Government of India on September 25, 2014, to encourage companies to manufacture their products in the country.

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The government has plans to offer these manufacturers a benefit of 4-6% on incremental sales for those goods that have been manufactured locally. The benefit will be given for a period of five years. According to the FDI policy circular of 2017, the incentives will be offered to large number of manufacturers on the sale of mobile phones that carry an invoice value of $200 (₹14,580 approx.).

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The incentive scheme will certainly prove to be a beneficial one for companies like Apple and Samsung, who are known to make and sell high-end mobile phones and other devices. Indian mobile phone brands like Lava, Karbonn, Micromax, and Intex would also be the biggest beneficiaries of this scheme.

PLI Scheme aims at making India a manufacturing hub

The new PLI incentive scheme was devised in consultation with the Ministries of Finance and Commerce along with Niti Aayog and will be launched by the Ministry of Electronics and Information Technology. According to a source, the scheme aims to help the country become one of the biggest manufacturing powerhouses like China and Vietnam.

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A source close to the IT Ministry has stated that the electronics hardware manufacturing sector is faced with a lack of level-playing field with regards to the competing countries and also suffers from a disability of around 8.5% to 11% in terms of lack of required infrastructural facilities, domestic supply chain and logistics, high financial cost, limited availability of quality labour, limited design capabilities, low focus on R&D and lack of skill development.

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Image credits: Unsplash | Robin Worrall

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