- The government has launched three incentive schemes with a total outlay of about ₹48,000 crore to boost large-scale manufacturing of electronics in the country.
- These three schemes are –
- Production Linked Incentive
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
- Modified Electronics Manufacturing Clusters
Production Linked Incentive:
- Targeted at mobile phone manufacturing and specified electronic components. The government initially plans to incentivise 10 firms — five global and five local.
- This Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS):
- It shall provide financial incentive of 25% on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.
Modified Electronics Manufacturing Clusters:
- It shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.
- With the three new schemes, the government aims to manufacture electronics worth ₹8 lakh crore, while generating employment for about 10 lakh people in the next five years.