the Central Government has recently sanctioned a 17,000 Crore Rupees Production Linked Incentive (PLI) scheme. Cabinet invests this amount of money to facilitate domestic gadget manufacturing. This will help increase the share of local manufacturing of laptops and tablets in India. This move marks a major milestone towards a new era of self-reliant India. It also defines its aim is to make India an electronic manufacturing hub for Personal Computers (PCs).
Details of the PLI Scheme
Under this scheme, Union Cabinet has identified 34 units in 13 states across India. These states will get special incentives and interest subsidies when they manufacture laptops and tablets. This scheme is a part of the new National Policy on Electronics. Mainly to meet the ever-growing demand for electronic products in the country. Under the scheme, these eligible companies will receive incentives that shall be applicable for the period of FY 2021-26. Incentives will be granted on incremental sales of manufactured goods over the base year of 2020-21. It an estimation that the total production of laptops and tablets can reach 2.5 crores per annum and add at least 30 thousand direct jobs.
Benefits Of The PLI Scheme
he Production Linked Incentive Scheme will facilitate the Make-In-India initiative of the government. This scheme will also help reduce the import of Personal Computers (PCs) into India. The scheme will increase the supply of laptops and tablets in the country at highly competitive prices, thereby making them more affordable to consumers. The scheme will also increase competition in the market and enable companies to provide quality products.
The PLI Scheme will help the government in achieving the goal of making India a global hub of direct foreign investment and technology transfer by establishing cutting-edge manufacturing units in the country. India will manufacture an estimate value of around Rs 3.2 lakh crore worth of laptops and tablets by 2024-25. Expectedly, the scheme will create huge employment opportunities for people in the electronics sector.
Critical Nature Of The Scheme
This PLI scheme is of utmost importance to the Indian economy. It is projected that electronic products account for over 40 percent of the total imports into India. By launching this policy, local electronics manufacturers will benefit by being able to produce their goods, benefiting from government incentives. This will not only help to reduce the gap between the demand and supply of laptops and tablets in the country but will help to generate employment opportunities in the local economy.
In conclusion, The Production Linked Incentive Scheme will be an important factor in the further growth of the Indian economy. A boost to the domestic production of laptops and tablets. A huge emphasis has been placed on greater efficiencies and greater relevance that would be essential to push for a global platform. It will create innumerable job opportunities and result in more value addition to the domestic economy. The scheme will also provide a platform for local electronics manufacturers to compete with imported products. This will help to offer quality yet more affordable alternatives.