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Production Linked Incentive (PLI) scheme "EMPOWER IAS"

Production Linked Incentive (PLI) scheme "EMPOWER IAS"

News:

  • The Government of India has launched three incentive schemes to boost electronics manufacturing in the country.

 

About Schemes:

Production Linked Incentive (PLI) scheme:

  • The largest among the three schemes, with an outlay of Rs 40,000 crore, will give incentives of 4-6 per cent on incremental sales of electronic products including mobiles and electronic components such as photopolymer film, Printed Circuit Boards and Assembly, Testing, Marking and Packaging units. 

 

Electronics Manufacturing Clusters (EMC) 2.0:

  • The main objective of the scheme is to provide support to companies that are creating world class infrastructure in the Electronics sector. The scheme has been launched under National Policy for Electronics 2019. It aims to make India a global hub of mobile manufacturing.

 

Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS):

  • The scheme provides an incentive of 25% of the capital spent on establishing an electronics plant, equipment, machinery, technology, etc.

 

Significance

  • The three schemes together with an outlay of Rs 48,042.25 crore is expected to lead to an investment worth Rs 20 lakh crore and create employment opportunities for almost 25 lakh people in the next 5-6 years. 
  • These schemes are expected to play a huge role in realising India's goal of achieving $1 trillion in digital economies by 2025.