The union budget was presented on February 1, 2021, by Nirmala Sitharaman, Finance Minister, India. She informed, to achieve double-digit growth, PLI schemes to create manufacturing global champions for an Atma Nirbhar Bharat have been announced for 13 sectors. This will be an addition to the ₹40,951 crore announced for the PLI for electronic manufacturing schemes.
This would eventually attract global players in the manufacturing sector and make India globally competitive by attracting investment in the areas of core competency and cutting-edge technology. It will further encourage local companies to set up or expand existing manufacturing units in the country.
The scheme was also a part of the Economic Survey that was tabled in the Parliament recently. The Survey added that the scheme will establish backward linkages with the MSME sector in the country, which, in turn, will lead to more inclusive growth and create huge employment opportunities.
In November 2020, the central government approved a ₹1.45 trillion PLI scheme for 10 sectors which included advance chemistry cell (ACC) battery used in consumer electronics, electric vehicles, renewable energy, electronic & technology products, automobiles & automobile components, pharmaceutical drugs, telecom & networking products, textile products, food products, solar PV modules, air conditioners, LEDs, and speciality steel.
The PLI scheme for large-scale electronics manufacturing, notified earlier on April 1, 2020, serves the purpose of providing incentives to producers. This will be a major step ahead in making India a hub for manufacturing and exports. Under the scheme, eligible players will receive incentives ranging from 4-6% of production value for five years, after they achieve their investment and production value target for each year.
In October last year, the Ministry of Electronics and IT had approved the applications of Samsung, Foxconn Hon Hai, Pegatron, Rising Star and Wistron from among the international applicants for manufacturing of mobile phones in India under the PLI scheme. The domestic companies approved for mobile phone manufacturing under the scheme are Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics.