GoI launches three new schemes to boost Electronics sector

On June 2, 2020, the Union Minister Ravi Shankar Prasad launched three new schemes to bbost electronics sector. They are Production linked incentive scheme, cluster scheme (EMC 2.0) and component manufacturing scheme (SPECS).

The schemes were approved by the Union Cabinet in March 2020.

About the schemes

The schemes are expected to attract investments. They will increase the manufacturing of mobile phones and their parts to around Rs 10 lakh crores by 2025. Also, the scheme will help generate 5 lakhs direct and 15 lakhs of indirect jobs.

Production Linked Incentive Scheme

The scheme will provide an incentive of 4% to 6% to the goods manufactured in India.

SPECS

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) will provide incentive of 25% on the capital expenditure. This is extended to certain identified lists such as semiconductor devices, electronic goods, display fabrication units, etc.

EMC 2.0

The Modified Electronics Manufacturing Clusters (EMC 2.0) will support in creating world class infrastructure. The scheme will help in attracting global electronics manufacturers and their supply chains.

Current Scenario

India is now the second largest mobile manufacturing country in the world. Today there are more than 200 mobile manufacturing units in the country. In 2014, the manufacturing worth of the country was Rs 1,90,366 crores. Today, it has increased to Rs 4,58,000 crore. The global share of electronics has increased from 1.3% in 2012 to 3% in 2018.

Month: Current Affairs - June, 2020