Smartphones, components worth Rs 11.5 lakh crores to be produced in India in next 5 years: Ravi Shankar Prasad

New Delhi [India], August 1 (ANI): Mobile phones and components worth Rs 11.5 lakh crores will be produced in India in the next five years under the Production-Linked Incentive (PLI) Scheme, Ravi Shankar Prasad, Union Minister for Electronics and IT said here on Saturday.
"Under the Production-Linked Incentive Scheme, around 22 companies have applied. These companies will produce mobile phones and components in India worth Rs 11.5 lakh crores in the coming five years, out of which products worth Rs 7 lakh crores will be exported," Prasad said while addressing a press conference here.
He said these companies will create three lakh direct and around nine lakh indirect jobs.
Prasad said this scheme is not against any country, it is only India positive. "I do not wish to take the name of any country. We have got proper rules and regulations with regard to our security, bordering countries, all those compliances are important," he said.
"We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country," he added.
Prasad said that PLI Scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers.
The PLI Scheme, which extends an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies for a period of five years subsequent to the base year, for large-scale electronics manufacturing was notified on April 1, 2020.
According to a statement, the international mobile phone manufacturing companies that have applied under mobile phone (invoice value Rs 15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, three companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
"Over the next five years, the scheme is expected to lead to total production of about Rs 11.5 lakh crore. Out of the total production, companies under mobile phone (invoice value Rs 15,000 and above) segment have proposed a production of over Rs 9 lakh crore, the companies under mobile phone (domestic companies) segment have proposed a production of about Rs 2 lakh crore and those under specified electronic components segment have proposed a production of over Rs 45,000 crore," the Ministry of Electronics and IT said in the statement.
The Union Minister also expressed confidence that PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat.
"Under the leadership Prime Minister Narendra Modi and his visionary initiatives like the 'Digital India' and 'Make in India' programmes, India has witnessed unprecedented growth in electronics manufacturing in the last five years," the statement said.
"The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by focusing on size and scale, promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally," it added. (ANI)