Production-Linked Incentive (PLI) Scheme for Smartphone Manufacturing
The Indian government's flagship Production-Linked Incentive (PLI) scheme has played a crucial role in boosting smartphone production and exports in the country. The scheme was first announced in 2020 with a financial outlay of Rs 38,601 crore, providing incentives of 4-6% on net incremental sales of eligible products.
Key Achievements and Disbursements
- From 2022-23 to 2024-25, nearly $1 billion has been disbursed under the PLI scheme.
- 19 companies qualified for the incentives, with a total of Rs 8,700 crore disbursed.
- Apple's contract manufacturers - Foxconn, Tata Electronics, and Pegatron - received over 75% of the total incentives.
Impact on Exports and Employment
- India's handset exports reached $13.1 billion between April-November 2024, making them the second highest exported product.
- The scheme generated 1,22,613 direct jobs over three years.
Challenges and Future Projections
- Some domestic companies like Lava, Bhagwati, and Optiemus did not meet PLI targets.
- Companies have committed Rs 11,324 crore in investments and projected production of Rs 10.7 lakh crore.
- Target exports for the current financial year are over $20 billion.
Budget Allocation
The PLI scheme received a significant allocation of Rs 8,885 crore in the Union Budget for 2025-26, highlighting its importance over other ministry schemes.
Conclusion
The PLI scheme has significantly enhanced India's smartphone production capabilities, exports, and employment, reinforcing the country's position in the global electronics manufacturing sector.