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June 12, 2024

Doubling Value-Addition: India’s New PLI Scheme to Revolutionize Electronics Manufacturing

India is on the verge of a significant leap in its electronics manufacturing sector with the imminent launch of a new production-linked incentive (PLI) scheme. This ambitious initiative aims to achieve a remarkable 35-40 percent value-addition in electronics components manufacturing, effectively doubling the current levels of 18-20 percent, according to government sources.

The PLI scheme is designed to provide substantial incentives to manufacturers, encouraging them to increase their production capabilities and add more value within the country. This move is part of a broader strategy to enhance India’s manufacturing prowess and make it a competitive hub for electronics production on the global stage.

Government officials familiar with the plan believe that the new scheme will bring about a significant transformation in the electronics manufacturing landscape. “Once the scheme comes into effect, we expect a notable increase in value addition. In the long term, this will position India as a competitive destination for electronics manufacturing,” an official said.

Currently, India’s electronics manufacturing sector lags in terms of value addition, with much of the production relying heavily on imported components. By incentivizing local production and value addition, the government aims to reduce dependency on imports, foster innovation, and create a more self-reliant ecosystem.

The new PLI scheme is expected to attract substantial investment from both domestic and international players. With higher value-addition targets, companies will be motivated to invest in advanced technologies, research and development, and skill development. This, in turn, will lead to the creation of high-quality jobs and contribute to the overall economic growth of the country.

One of the key aspects of the scheme is its focus on creating a robust supply chain for electronics components. By encouraging manufacturers to source more components locally, the scheme aims to build a sustainable and resilient supply chain network. This will not only reduce production costs but also enhance the competitiveness of Indian products in the global market.

Moreover, the increased focus on value addition will drive innovation and technological advancements within the industry. Companies will be incentivized to develop new and improved products, which can meet both domestic and international demand. This will further strengthen India’s position as a hub for electronics manufacturing and export.

The government is also keen on ensuring that the benefits of the PLI scheme reach small and medium enterprises (SMEs) in the sector. By providing incentives to SMEs, the scheme aims to create a more inclusive and diverse manufacturing ecosystem. This will enable smaller players to scale up their operations, enhance their capabilities, and contribute to the overall growth of the industry.

In addition to financial incentives, the PLI scheme will also focus on creating an enabling environment for manufacturers. This includes simplifying regulatory processes, improving infrastructure, and providing access to cutting-edge technologies. Such measures will reduce operational hurdles and make it easier for companies to set up and expand their manufacturing units in India.

As the new PLI scheme takes shape, it is poised to play a pivotal role in transforming India’s electronics manufacturing sector. With a strong emphasis on value addition, innovation, and sustainability, the scheme will help the country achieve its goal of becoming a global leader in electronics production.

In conclusion, the new PLI scheme for electronics manufacturing marks a significant step forward in India’s journey towards becoming a major player in the global electronics market. By doubling value addition and fostering a competitive manufacturing environment, the scheme will not only boost the industry’s growth but also contribute to the broader economic development of the country. As India gears up to launch this ambitious initiative, the future of electronics manufacturing in the country looks promising and full of potential.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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