PLI to cut India’s dependence on China

Minister of State for Electronics and IT, Sanjay Dhotre, informed the Lok Sabha that the government is working on expanding sourcing of electronic components and raw material along with promoting domestic manufacturing of Chinese electronic products. For example, it is offering an incentive of 4%-6% to eligible firms on incremental sales (over base year) involved in manufacturing mobile phone and specified electronic components. The scheme encompasses Assembly, Testing, Marking and Packaging (ATMP) units under PLI scheme for large-scale electronics manufacturing.

“The National Policy on Electronics 2019 (NPE 2019) has been notified on February 25, 2019. The vision of NPE 2019 is to position India as a global hub for electronics system design and manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally,” Dhotre stated.

The minister added that “Electronics Development Fund (EDF) has been set up as a ‘Fund of Funds’ to participate in professionally managed ‘Daughter Funds’ which in turn will provide risk capital to startups and companies developing new technologies in the area of electronics and Information Technology. Rs 409 crore has been committed through EDF to 9 Daughter Funds with a targeted corpus of Rs 2,626 crore.”