Production-related incentives for electronics manufacturers to attract investments: CEAMAPTI | New Delhi | Updated: 21-03-2020 21:57 IST | Created: 21-03-2020 21:57 IST
The appliances and consumer electronics industry on Saturday welcomed the government’s decision to grant production-linked incentives for the sector, saying the move will boost domestic manufacturing and attract large investments. Besides, this would also help in creating more job opportunities in the country and support India becoming an electronics manufacturing hub, said the Consumer Electronics and Appliances Manufacturers Association (CEAMA) in a statement.
“We welcome the array of schemes introduced by the Union Cabinet. In this difficult time where the industry is going through a tough phase, the steps taken by the government will help to boost domestic manufacturing and attract large investments in the electronics value chain,” said CEAMA President Kamal Nandi. “We are hopeful that the proposed schemes will aid in creating more job opportunities,” he added. The Union Cabinet on Friday approved production-linked incentives worth Rs 40,995 crore for electronics manufacturing companies.
Under the scheme, electronic manufacturing companies will get an incentive of 4 to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies over a period of next 5 years. The government expects to generate manufacturing revenue potential of Rs 10 lakh crore and create direct and indirect jobs for 20 lakh people by 2025 through these schemes.
Besides this, the cabinet in its meeting held on Friday also approved incentives for medical devices to reduce dependency on import of electronic products for medical care in the country. Under the scheme, electronic manufacturing companies will get an incentive of 4 to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies over a period of next 5 years.
According to CEAMA, announcement of the Production Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, will assist in the necessary boost to the sector and economy. “This will also put an upward thrust on the economy by bringing in large scale electronics manufacturing to India,” said Nandi adding the announcement of PLI will assist in the necessary boost to the ‘Make in India’ initiative and support India into becoming an electronics manufacturing hub.