India approved a Rs. 7,350-crore plan to boost local manufacturing and exports of IT products such as laptops, tablets, personal computers, and servers, the technology minister said.
The production-linked incentive (PLI) plan will help India export IT goods worth Rs. 2,45,000 crore, minister Ravi Shankar Prasad told a news conference.
It provides manufacturers cash-backs of between 1 percent and 4 percent of additional sales of locally made goods over four years, with 2019-2020 as the base year.
“The focus of the scheme is to get global champions to India and to make national champions out of local manufacturers,” Prasad said, adding that the plan could create roughly 180,000 jobs.
The PLI plan is also likely to help US tech giant Apple assemble some of its iPad tablets in India, Reuters previously reported.
Prime Minister Narendra Modi’s policy push in the electronics sector has prompted Apple suppliers Foxconn and Wistron to expand in India, and driven Pegatron to set up base there.
The three Taiwan companies have committed to invest roughly $900 million (roughly Rs. 6,510 crores) to make iPhone models in India as part of a $6.7 billion (roughly Rs. 48,470 crores) PLI plan launched by the government last year.
Modi’s strategy, coupled with India’s huge market, have also helped turned the country into the world’s second-biggest mobile maker after China.
New Delhi now wants to replicate the success of smartphone manufacturing with other electronics in a bid to cut imports.
The federal cabinet last week approved a $1.68 billion (roughly Rs. 12,150 crores) plan to promote local manufacturing and export of telecoms and networking gear.
© Thomson Reuters 2021
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