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Current Affairs

Cabinet plan for electronics manufacturing

Date: 22 March 2020 Tags: Infrastructure

Issue

In a bid to boost large-scale electronics manufacturing in India, the Union Cabinet approved three schemes, including a production-linked incentive scheme, with a total outlay of almost ?48,000 crore.

 

Background

The electronics hardware manufacturing industry in India is projected to produce electronic goods worth $104 billion by 2020 from US$32.462 billion in 2013–14.

 

Details

  • The three schemes together will enable large-scale electronics manufacturing, a domestic supply chain ecosystem of components and a state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners.

  • The schemes are expected to attract new investments worth at least ?50,000 crore in the sector, while generating more than five lakh direct and 15 lakh indirect jobs.

  • The production-linked incentive scheme aims to attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units.

  • The scheme will offer an incentive of 4-6% on incremental sales of goods manufactured in India and is expected to create a total of 8 lakh jobs.

  • Domestic value addition for mobile phones is expected to rise to 35-40% by 2025 from the current 20-25% due to the impetus provided by the scheme.

  • The scheme, Electronics Manufacturing Clusters (EMC) 2.0, aims at creating quality infrastructure with a minimum area of 200 acres along with industry-specific facilities such as common facility centres, ready-built factory sheds/ plug-and-play facilities.