PLI incentive attracts Rs 6K-cr investments in electronics

New Delhi: The government on Friday said the production-linked scheme (PLI) for large scale electronics manufacturing (including mobiles) has seen investments worth Rs 6,887 crore (till June 2023), already surpassing the target for FY24 which was Rs 5,488 crore.

The PLI scheme for large scale electronics manufacturing, notified in April 2020 for a period of five years, extended an incentive of 3-6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments like mobile phones and specified electronic components, to eligible companies.

"During the scheme tenure, the scheme is expected to contribute investment of Rs 7,000 crore, production of Rs 8,12,550 crore, exports of Rs 4,87,530 crore and generated employment of 2,00,000 (direct jobs)," Minister of State for Electronics and IT, Rajeev Chandrasekhar, told the Rajya Sabha.

Till June this year, the PLI scheme has generated Rs 3,30,612 crore worth production, Rs 1,56,051 crore worth exports, and 62,173 direct jobs (cumulative). "The government's goal is to broaden and deepen the country's electronic manufacturing ecosystem as well as increase India's participation in electronics Global Value Chains (GVCs)," said the minister.

Till date, 32 applicants have been approved under the PLI scheme.

To improve the quality of electronic goods manufactured or imported into the country, the IT Ministry's 2021 notification mandates compulsory compliance for manufacture or store for sale, import, sell or distribute of notified electronic goods or articles to corresponding Indian standards.

Under this order, the ministry has notified 64 electronic goods or articles for mandatory compliance.