Government launched Rs 50,000 crore plan on Tuesday to boost electronics manufacturing in the country, saying it would be start by offering 5-global smartphone makers incentives to establish or expand domestic production in India.
The government is offering a Production-Linked Incentive (PLI) involving cash worth 4% to 6% of additional sales of goods made locally over five years, with 2019-2020 as the base year, Union Minister Ravi Shankar Prasad told in a news conference.
Names of the top five companies, which would have to meet investment and sales thresholds to be eligible, were expected to be announced in the upcoming two months, said by ministry officials in news conference.
Five Indian firms would also be selected for the Production-Linked Incentive (PLI) scheme, which, along with the two other related initiatives, could help India to produce smartphones and components worth of Rs 10 lakh crore by 2025, Mr Prasad said.
The smartphone industry has become a showpiece for Prime Minister Narendra Modi’s ‘Make In India’ drive. The government now wants to make the country an Top export hub.