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The Centre on Tuesday has approved incentives for Foxconn India and Padget Electronics (100 per cent subsidiary of Dixon Technologies), worth ₹357.17 crore and ₹58.29 crore, respectively, under the production linked incentive (PLI) scheme for large-scale electronics manufacturing (LSEM).
Foxconn Hon Hai Technology India Mega Development Pvt. Ltd (Foxconn India) is the first global company that has been approved under the target segment ‘Mobile Phones’ (Category: Invoice Value ₹15,000 and above) to receive incentive under mobile manufacturing for the period August 1, 2021 to March 31, 2022 based on its incremental investments and sales figures, NITI Aayog said in a statement.
Similarly, Padget Electronics, a domestic company, has been approved by the empowered committee headed by the CEO of Niti Aayog, to receive incentive under mobile manufacturing for the quarter January-March 2022 based on its incremental investments and sales figures under the target segment ‘Mobile Phones’ (Category-domestic companies).
Padget Electronics had already received an amount of ₹53.28 crore under the PLI scheme for LSEM for the period August-December 2021 based on its incremental investments and sales figures.
The PLI scheme for LSEM, under the Ministry of Electronics and IT (MeitY) is advancing towards making India a competitive destination for electronics manufacturing and providing a boost to Aatmanirbhar Bharat while creating more global champions in this sector.
As of September, the PLI scheme for LSEM has attracted investment of ₹4,784 crore, and led to total production of ₹2,03,952 crore, including exports of ₹80,769 crore. The scheme has also generated employment of 40,916 people. Electronics manufacturing is expected to rise to $300 billion by 2025-26.
The PLI for LSEM sector has attracted leading global players, including Foxconn, Samsung, Pegatron, Rising Star and Wistron while leading domestic companies, including Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics, have also participated in this scheme.
As a result of government initiatives and industry’s efforts, India has made rapid advances in the past five years in the field of electronics manufacturing. The production of mobile phones has risen from about six crore in 2014-15 to around 31 crore in 2021-22. There has been a sharp increase in export of mobile phones also worth ₹45,000 crore in FY 2021-22 and during the current year up to November, mobile phone exports have already crossed ₹40,000 crore.
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