Smartphones & Components Worth Rs 11.5 Lakh Cr To Be Made In India In Next 5 Years: IT Minister

New Delhi: The Ministry of Electronics and IT revealed that the proposals submitted by mobile and components companies under Production Link Incentives (PLI) scheme is expected to create 3 lakh direct and 9 lakh indirect jobs in India.

Mobile phones worth around Rs 9 lakh crore in the above-Rs 15,000 category are expected to be made here. In the sub-Rs 15,000 category, devices worth Rs 2 lakh crore are expected to be produced, Union IT Minister Ravi Shankar Prasad said on Saturday.

The scheme is India positive but won’t affect any country at the same time, the minister said. “I do not wish to take the name of any country. We have got proper rules and regulations with regard to our security, bordering countries, all those compliances are important,” he explained, adding that the schemes will give 4-6 per cent incentives to electronics companies that make components such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as microelectromechanical systems in India.

Among the proposals submitted are foreign contract manufacturers of Apple (Foxconn Hon Hai, Wistron and Pegatron). Samsung, Lava, Dixon, Micromax have also submitted and it is expected that mobile devices and components worth over Rs 11 lakh crore will be manufactured in India in the next 5 years.

Home-grown Lava is reportedly planning to invest around Rs 800 crore over the next five years under this scheme.

The incentives for manufacturing of electronic components and semiconductors, modified electronics manufacturing clusters (EMC 2.0) scheme, and production-linked incentive scheme for large-scale electronics manufacturing will be around be Rs 50,000 crore over the next five years.

Component manufacturing companies, including motherboard maker AT&S, Ascent Circuits, Sahasra and Vitesco, have also submitted proposals. About 40 companies have shown interest.