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Rs 45k crore fund for electronic manufacturing

The Government of India is planning a Rs 45,000-crore fund to ensure that large firms like Apple, Samsung, Huawei, Oppo and Vivo, as well as contract manufacturers like Foxconn and Wistron relocate their global supply chains to India. This will help India become an electronics manufacturing hub in the next five years. According to a senior government official, “an inter-ministerial note (on this) has been floated. Around Rs 41,000 crore would be disbursed to companies based on the production-linked incentive (PLI) criteria, while the remaining Rs 4,000 crore would be offered under a proposed capital subsidy, or reimbursement, scheme. This regime will replace the popular Modified Special Incentive Package Scheme (M-SIPS). “The government expects the PLI scheme to generate over 200,000 jobs, exports of over Rs 5 lakh crore and direct tax revenue of close to Rs 5,000 crore over five years,” the official stated.