News Brief
Government Exploring Dedicated PLI Scheme For Electronics Component Manufacturing
Nayan Dwivedi
Nov 01, 2023, 01:41 PM | Updated 01:41 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Ministry of Electronics and Information Technology is considering a separate production-linked incentive (PLI) scheme for electronics component manufacturing.
The ministry is discussing this potential scheme with the Ministry of Commerce and Industry and NITI Aayog, as per reports by Financial Express.
The proposal for a distinct PLI scheme for local electronics component production has arisen from ongoing talks between the government and the industry.
Some industry players have suggested that a separate PLI scheme is needed to support the production of electronic components.
The current scheme, called scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS), groups various electronic components together and offers a 25 per cent financial incentive on their capital expenditure.
Industry experts argue that different types of electronic components have varying financial needs, sizes, and production methods. A separate PLI scheme could address this issue.
While the Ministry of Electronics and Information Technology is interested in this idea, the Ministry of Commerce is cautious about introducing more PLI schemes.
This decision is crucial because the current SPECS scheme is set to end by 31 March 2024. There is also a proposal to extend the SPECS scheme and increase its allocation.
The next steps involve discussions with industry stakeholders to create a framework for the new PLI scheme, determining the incentives and parameters for companies manufacturing components in India.
The government has set an ambitious goal of reaching $300 billion in electronics manufacturing production by 2025-2026, a significant increase from the $102 billion in FY23.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Nayan Dwivedi is Staff Writer at Swarajya.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.