Coming Soon: A Rs 45,000 crore fund to push electronics manufacturing
New Delhi: The Centre is readying a Rs 45,000-crore fund in an aggressive push to ensure big firms such as Apple, Samsung, Huawei, Oppo and Vivo, besides contract manufacturers like Foxconn and Wistron, bring their global supply chains to India and make the country an electronics manufacturing hub in the next five years.
“An inter-ministerial note (on this) has been floated,” a senior go nment official told ET.
Out of the Rs 45,000-crore fund, about Rs 41,000 crore would be disbursed to companies based on production-linked incentive (PLI) criteria, while the remaining Rs 4,000 crore would be offered under a proposed capital subsidy, or reimbursement, scheme. The proposed scheme will replace the popular Modified Special Incentive Package Scheme (M-SIPS).
“The go nment expects the PLI scheme to generate over 200,000 jobs, exports of over Rs 5 lakh crore and direct tax revenue of close to Rs 5,000 crore over five years,” the official said.
Tough Qualification Criteria Likely
The disbursement mechanism of the PLI scheme would be firmed up during interministerial consultations, officials said. It would likely be similar to the duty credit scrip scheme under the current Merchandise Exports from India Scheme (MEIS), which is being wound down by March 31, they said.
Duty credit scrip is a certificate with certain monetary value that can be utilised for payment of customs duty.
Government officials are trying to ensure the new policy is compliant with World Trade Organization guidelines and the support is not directly linked to exports. New Delhi, however, wants to put in tough qualification criteria to ensure the funds are not used by those who manufacture devices only for the local market.
The likes of Foxconn — the world’s largest contract manufacturer that also operates the biggest such facility for smartphones in India — as well as Samsung, Huawei, Vivo and Oppo together account for more than 80% of the $500-billion global mobile phone market.
On Saturday, finance minister Nirmala Sitharaman announced that the go nment was working on a scheme to boost local electronics production, but said details would be unveiled later. The draft proposals have been sent to the secretaries of revenue, expenditure, economic affairs, commerce, Department for Promotion of Industry and Internal Trade, Ministry of Electronics & Information Technology (MeitY), Niti Aayog CEO and the Directorate General of Foreign Trade (DGFT) for comments.
Eligibility of companies would be subject to thresholds of incremental employment generation, incremental investment and incremental sales of manufactured goods, in order to maximise exports and value addition in India.
“The (PLI) scheme will open for a period of three months initially, inviting applications. However, the disbursement of incentives for the approved applicants would continue for a period of five years, based on the response from the industry,” another official said.
An empowered committee comprising secretaries of revenue, expenditure, economic affairs, DPIIT, MeitY and DGFT will monitor the implementation and allotment of funds. Also, a project management agency will assist the empowered committee.
The second official said the second scheme — to replace M-SIPS — will be open for application for three years.
“This will have an incentive of 25% on capital investments on plant, machinery and equipment and will be provided to industrial units making investment for manufacturing of electronic components and sub-assemblies in specified categories,” the official added. Currently, M-SIPs offer 20% and 25% reimbursements, depending on whether the plant is located in an SEZ or not.
Last month, the prime minister had met smartphone manufacturers including representatives from Apple, Samsung and Lava, and sought suggestions on how to make India an electronics manufacturing and export hub. Following this, go nment officials fast-tracked work on the modalities of the incentives that need to be doled out to attract big-ticket investments. The go nment has set an ambitious target to increase smartphone exports to $110 billion by 2025 from $3 billion now, and become a net exporter of electronics goods.
译文来源：三泰虎 http://www.santaihu.com/49286.html 译者：Joyceliu
Unprecedented move by Govt. This is a game changer.
Read sree iyer books to know what happened in the UPA period. Why demonetization and why change of all the currency notes including small 10 and five rupee notes were changed in design................................IT IS NOT EASY TO RULE AND REVERSE ALL THE CRIMES OF 70 YEAR ANARCHY........................WAIT AND SEE
good opportunity to get export industry
As CONGRESS virus is getting eradicated the country is becoming healthy. If we can achieve in software why not in Hardware...THE EARLIER GOVTS WERE NOT INTERESTED IN ANYTHING EXCEPT LOOTING THE NATION WE COULD NOT ACHIEVE ANYTHING THRU GOVT..............SOFTWARE ACHEIVENMENT WAS ENTIERLY THRU PRIVATE SECTOR...
one mistake -software success was in congress era which you hate so much
We should take present opportunity to stop all imports from China.
Frankly speaking absolutely fantastic idea for India in current situation but should be implemented in TIME.
Wow! No other go nment did this kind of investment to boost electronics manufacturing before.
mehra,every govt tried n failed.You are not educated enough to understand why it failed.Wait n watch this failing.The main reason is indians lack talent-skills,have no infra,have no marketing muscle.We dont even have a silicon refinery in india ,no chip designers,nothing.
Srinivasan G Kailasam
We had a fantastic Electronics manufacturing eco system in and around Delhi in the 70s when China was nowhere in the picture. We lost the initiative then as the GOI never had the vision to see the employment prospects of this industry.Anyway, it still not late. Better late then never.
SPENDING 41,000 CRORE AND GETTING TAX OF ONLY 5000 CRORE INITIALLY. MAY BE GOOD IN THE LONG TERM.
its not money can bring everything. It should be cultivated within us. floor level climate for electronic industry. Stable policy bluffing in election rallies abusive speech all these r fear for foreign companies. we have to remember that 5years back garments from Bangladesh was rejected by EU saying it is made of slavery and poorly compensated staff. so we have to bridge the gap between our own citizens of various caste creed religion etc.put more intellectual think tanks in education and grow culture within students
nothing is going to happen until IIT educated quality engineers develops sense off responsibility and duty to the country. Anybody considered old fashioned but fact is India need to stop brain drain and it can't stop until those in line develop call of duty. it's not money but it's the call of motherland that matters. India has created that example in space science. it's more effort and not money.
PAWAN KUMAR POTLURI
It will happen eventually when jobs in western countries come down.It is happening. They are pricing themselves out of the market, happened with China becoming a manufacturing power house.
Good. We would wait and seeT81
By the time the scheme is implemented next budget will come & Nirmala will be replaced by K V Kamat
等该方案真的实施的时候，又该出台下一个预算了，莫迪也会被K V 卡马特取代了。
Very good move. Set timelines for same and provide periodic updates to people of this country.
There is no easy way, cut red tape, decrease taxes, divert money from food subsidy,. ayushman bharat, fertilizer subsidy towards infrastructure on a war footing. Decrease regulations, fire Bureaucrats, we don't need them. Simplify labour laws, ban labour unions, allow 100% FDI in manufacturing, we need to create a talent pool in India. Sadly, politicians take a short cut and come up with such schemes like these, which are very shady and mostly end up in the bank accounts of corporates and politicians and bureaucrats.
I AM SSK
remove BJP bring Manmohan then economy will change
not possible in BJP time as their priorities are different
Economy's over reliance on Everything that is Digital is going to be Short Lived or a Fad. India should stop catching up with the world on Digital and Electronics including EVs and Embark on what is the Future -An Analog world with Perfection in Concept, Design, Geometry and Engineering (of a Musical Instrument!). It is surprising to see India chasing other's success stories, rather than creating its very own (like the IT).
Too little too late! When will we ever wake up? Bur there are no Indian manufacturer/entrepreneur/industrialist who is interested in manufacturing mobile phones. It's the Chinese who rule the market. And that will not stop there....it will happen in all sectors including TVs, fridges, washing machines, air conditioners etc. Again, when will we wake up?
BAN china maal asap.
Why? Why waste money? China cut taxes , cut red tape, cracked down on labour unions and developed infrastructure. They took the HARD WAY and now they are enjoying the fruits. But New Delhi wants to raise taxes, pander to labour unions, Increase regulations and use infrastructure money for farm loan waivers, food subsidy, ayushman Bharat etc etc.
Excellent. It will give more jobs and improve skills set of the people. Youth energy will be utilized andCountry can grow and reduce the trade imbalance.
i agree.The UPA1 govt was also trying but failed.Indian electronics can not scale up fast.The nation needs to build entire ecosystem within span of a year and offer low prices with highest quality.That will never happen here
we have seen what happens to modi's plans -noteband,smart cities,make in india,GST,jumlas after jumlas. MOdi govt should focus on making pakodas and just import from taiwan-korea-thailand and china
S K Mandal
Plan seems good, but its success will depend on efficient and impartial execution. Let's hope for the best