PLI scheme a historic development and game changer to secure India’s future in the global electronics industry
Mobile manufacturing to become India’s largest exports by 2025; Policy aimed at attracting global supply chains and building national champions from India to serve the world
New Delhi, Tuesday, 02 June, 2020…India Cellular and Electronics Association (ICEA) welcomed Unveiling of the INR 42,000 crs Production Linked Incentive (PLI) scheme by the Government. The scheme will boost growth in mobile phone manufacturing in India as well as meet enormous manufacturing and exports targets assigned under the National Policy on Electronics (NPE 2019).
“This scheme is a game changer for the nation and the industry – a historic development under the leadership of Prime Minister Modi to advance the “Make in India (MII)” program”, said Mr. Pankaj Mohindroo, Chairman, ICEA.
ICEA said that the 2nd of June, 2020 will be commemorated and remembered as a Red Lettered day in the history of the mobile handset manufacturing industry’s journey in the country. India had eclipsed Vietnam in 2017 to claim the World’s No. 2 mobile handset manufacturing nation tag. The industry underwent a spectacular, transformative journey with handset manufacturing posting a near 1100% growth in value terms during 2014 – 2019, as well as exports posting an approx. 3000% during 2016-19. ICEA felt confident that the formal institution of the PLI scheme will greatly hasten up this process and fulfill the Hon’ble Prime Minister’s Vision to establish India as the World’s No. 1 mobile handset manufacturing destination status.
“The Production Linked Incentive (PLI) instituted on mobile phones is indeed the first ever scheme ever announced by a Government in the Post – Independence period, whereby, similar production linked incentive is extended for both domestic Indian champions and global supply. The policy was a result of ICEA’s relentless focus and strenuous efforts put forth during the past 3-4 years along with the Government, which has culminated into a mindset change amongst policy makers and is leading to a path breaking step which can accelerate the emergence of a new breed of Indian domestic Champion companies who can reach out to the world”, added Mr. Pankaj Mohindroo.
ICEA said that it will continue to work with the Government and various industry stakeholders, located both outside India as well as within India, on reactivating and rejuvenating a new formulation of outreach initiatives and handholding support to help actualize these objectives covered under PLI on actual grounding of investments. ICEA is proud to be associated with this very exciting period in the nation’s history while the mobile manufacturing activity is on a boom. This will not only move forward to fulfill the Hon’ble PM’s vision on achieving the coveted World’s No. 1 mobile manufacturing destination status, but will also encourage, create and propel similar success stories in various other electronics verticals in coming years. ICEA’s vision on achieving USD 1 Trillion electronics hardware manufacturing target by 2027-28 is already calibrated and shared amongst various Government stakeholders. ICEA said that it will continue to pursue with their vision to create a One Trillion Dollar Electronics Hardware Manufacturing industry over the next 7-8 years.