Amid efforts to reduce imports from China, a government official on Wednesday said India’s cash stimulus to boost domestic manufacturing has brought in $17 billion (about Rs 1,42,279 crore) since the launch of the production-linked scheme in 2020. Has attracted investment of more than Rs.
The scheme, which provides four to six per cent cash incentive to manufacturers on increasing sales, was launched in 14 sectors including electronics, pharmaceuticals, textiles and white goods.
Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade, said, “The PLI scheme has been successful in attracting investment and promoting manufacturing.”
India has emerged as a global hub for electronics manufacturing, especially smartphones, and is now the second-largest producer of mobile phones, he said, citing Apple’s iPhone exports – expected to reach $12 billion in 2023 (about 1, More than Rs 00,437 crore). Financial year ending March 24.
He said the incentives had resulted in the creation of about 11 trillion rupees ($131.6 billion) worth of output and about 1 million jobs over four years.
After reducing mobile imports from China by attracting global players like Apple, India now plans to produce more laptops, tablets, computers and servers, official sources said.
On Tuesday, the government extended by three months the “import management system” launched in November 2023, which requires companies to register their laptop and tablet imports.
“We have indicated to the industry that we want to cut imports, especially from China,” said one of the government official sources.
According to consultancy Mordor Intelligence, India’s IT hardware market, including laptops, is worth about $20 billion (about Rs 1,67,395 crore), of which about $5 billion (about Rs 41,848 crore) is domestically produced.
India introduced the new system for laptops, tablets, personal computers and servers after withdrawing a previous plan to impose a licensing regime requiring companies like Apple, Dell and HP to obtain a license for the shipment of imported laptops and tablets. Announced.
In the first phase, the government has approved manufacturing incentives for 27 IT hardware manufacturers, including Acer, Dell, HP and Lenovo in India, to generate production worth about $42 billion (approximately Rs 3,51,530 crore) over the next few years. Expected to happen. Government officials said.
“India has a strong case for building its laptop manufacturing capabilities,” said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), a Delhi-based think tank. He said China contributed significantly to these imports amounting to more than $9 billion in 2023. /24.
In India, rising incomes, expanding business activities and education have boosted demand for laptops and other devices, boosting local manufacturing.
Among local electronics manufacturers, Dixon Technologies has qualified for the incentive scheme and is expected to meet 15 percent of India’s domestic demand by fiscal year 2025/26. “Dixon plans to build a capacity of two million units by fiscal 2026, which will meet 15 percent of India’s total requirement,” Prithvi Vachani, executive director of Dixon Technologies, told Reuters. Vachani said Dixon has signed separate agreements with global companies like HP to manufacture laptops and computers in India, which will ensure manufacturing of components locally “in the times to come”.
© Thomson Reuters 2024
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