Rallying behind the need for better tech infrastructure on the back of AI technology, Prime Minister Narender Modi has asserted that the Rs 2 lakh crore earmarked for the PLI (production-linked incentive) scheme for the next five years and will push India's participation in global value chains in the manufacturing sector to $500 billion.
“There is an expectation that the scheme would result in increasing the production by about $520 billion in the next five years,” PM Modi said in a virtual meet with manufacturing industry leaders on ‘PLI – Linking India To Global Value Chains'.
The PLI scheme for handsets launched in August 2020 entails an investment of Rs 11,000 crore from global and domestic companies like Foxconn, Wistron, Pegatron, Samsung, Lava, Dixon and Micromax to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
Mobile phones continue to be the largest exported category among electronics with 35% share. According to the National Policy on Electronics (NPE) 2019, handsets will contribute 48% or $190 billion of products in the next five years.
PM Modi also stressed the need to have innovation, cutting edge technology, improved infrastructure and less compliance burden to enhance India's participation in global value chains in the manufacturing sector.
According to India's apex handset body ICEA, the electronic industry can be the largest contributor to PM Modi's vision of achieving $5 trillion exports and stressed that government's investments must not be treated as subsidies by companies but a tool to become globally competitive.
“ICEA has submitted their recommendations to Meity which speaks for the mobile and electronics industry, the disabilities, what defines success and key policy interventions by the government of India,” Pankaj Mohindroo, chairman, ICEA said in a statement.
“It is imperative to offset the disabilities vis- à -vis other countries and encourage Global Value Chains (GVC's) and domestic industry players to set-up manufacturing facilities in India. We need to build policies to compete with countries and not companies”, Mohindroo added.