Modi Government Eyes Job Creation With Proposed PLI Scheme For Electronic Components

The Ministry of Electronics and Information Technology (MeitY) is reportedly evaluating a proposal to generate direct employment of 1.5 to 2 jobs for every Rs 1 crore invested by companies under the proposed electronic components production-linked incentive (PLI) scheme.

If implemented, this plan could result in the creation of 15,000 to 20,000 direct jobs for a Rs 10,000 crore investment in the electronic components sector.

The ministry is also considering two alternative proposals to tie the PLI scheme to employment generation.

One proposal would offer additional incentives to eligible companies meeting their employment commitments year-on-year.

The other would reimburse incentives if eligible companies achieve mandatory minimum employment targets set by the government.

“At an average overall level, we are looking at generation of direct employment for 1.5-2 people at a minimum for every ₹1 crore investment made under the PLI scheme," a senior MeitY official was quoted as saying in a Business Standard report.

The proposed scheme, with over Rs 35,000 crore expected to be earmarked for it, will cover a wide range of components.

This includes the manufacturing of sub-assemblies like camera modules, display assemblies, mechanical parts, battery packs, and vibrators, as well as key areas like manufacturing printed circuit boards (PCBs).

The scheme aims to add value to electronic finished products such as mobile devices, laptops, PCs, and servers.

At present, value addition in mobile devices manufactured in India stands at only 20 per cent, with a significant dependency on China for components.

This heavy reliance on imported components has led to a rising import bill as local production of finished items is also increasing.

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