MNC's finding PLI scheme lucrative for manufacturing in India

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India’s manufacturing sector is going to become an engine for economic growth and a unique job creator in the country. The government has finalised the norms for Production Linked Incentive (PLI) scheme for the telecom and networking equipment and has started inviting applications for the second round of large-scale electronics manufacturing with focus on some electronic components like motherboards, semiconductor devices, among others.

The COVID-19 pandemic has permanently changed device usage patterns of employees and consumers as the remote work is turning into hybrid work, home education changing into digital education and interactive gaming moving to the cloud, both the types and number of devices people need, have and use will continue to rise. In 2021, the number of laptops and tablets in use will increase to 8.8% and 11.7%, respectively, while the number of desktop PCs in use is expected to decline from 522 million in use in 2020 to a forecasted 470 million in use in 2022.

The environment is now conducive for overseas component manufacturers to shift their facilities to India. As the nation’s telecom sector stands poised to transition from 4G to 5G soon, the PLI scheme offers the right impetus by aiming to create a vibrant telecom manufacturing ecosystem.

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MNC's finding PLI scheme lucrative for manufacturing in India.

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    MNC's finding PLI scheme lucrative for manufacturing in India

    India’s manufacturing sector is going to become an engine for economic growth and a unique job creator in the country. The government has finalised the norms for Production Linked Incentive (PLI) scheme for the telecom and networking equipment and has started inviting applications for the second round of large-scale electronics manufacturing with focus on some electronic components like motherboards, semiconductor devices, among others.

    The COVID-19 pandemic has permanently changed device usage patterns of employees and consumers as the remote work is turning into hybrid work, home education changing into digital education and interactive gaming moving to the cloud, both the types and number of devices people need, have and use will continue to rise. In 2021, the number of laptops and tablets in use will increase to 8.8% and 11.7%, respectively, while the number of desktop PCs in use is expected to decline from 522 million in use in 2020 to a forecasted 470 million in use in 2022.

    The environment is now conducive for overseas component manufacturers to shift their facilities to India. As the nation’s telecom sector stands poised to transition from 4G to 5G soon, the PLI scheme offers the right impetus by aiming to create a vibrant telecom manufacturing ecosystem.

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    MNC's finding PLI scheme lucrative for manufacturing in India

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  • Watch PLI scheme is aimed to make India a manufacturing hub Video
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    Production Linked Incentive Scheme (PLI) was launched by the Government to boost manufacturing in India. We continue to see gaming PCs and monitor sales at all-time highs and Chrome-based devices are expanding beyond education into the consumer market. In retrospect, the pandemic not only fueled PC market demand but also created opportunities that resulted in a market expansion. The government of India had introduced the PLI scheme offering incentives to companies manufacturing in 10 key sectors in the country. It has aimed at making manufacturers globally competitive and attract investment in the areas of core competency. The scheme is targeted at making the country an integral part of the global supply chain. Production linked incentive scheme is likely to boost the manufacturing output in 5-Years.

    PM Modi said the government is continuously carrying out reforms to boost domestic manufacturing. In this year's Budget, about ₹ 2 lakh crore was earmarked for the PLI scheme for the next five years and 'there is an expectation that the scheme would result in increasing the production by about 520 billion dollars in the next five years . This is one of the best ways to encourage local companies to make their presence felt in telecom manufacturing. Telecommunications sector has played a pivotal role in facilitating growth of the economy and is a key enabler of digital connectivity and Digital India. Soon after the announcement of the PLI scheme for electronics manufacturing, the Centre cleared the names of 16 companies. Over the next five years, these Indian entities have proposed a production output of Rs1.25 lakh crore.

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    Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Anurag Jain on November 26 said that response to the Production-Linked Incentive (PLI) scheme for White Goods has been great and termed the scheme as a boost for the ‘Make in India’ initiative of the Centre.

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