Incentive Scheme for Large Scale Electronics Manufacturing approved by Cabinet

On March 21, 2020, the Union Cabinet under PM Modi approved the Production Incentive Scheme for large scale manufacturing of Electronics. The main aim of the incentivisation is to increase investments in mobile manufacturing.

Benefits

The scheme aims to create more than 2 lakh jobs. The indirect employment opportunities are expected to be three times as that of direct employment opportunities.

Background

It is to be noted that the finance minister Smt Nirmala Sitaraman in her previous GST Council meet had increased the tax rate of mobiles to 18%. Also, the union budget 2020-21 mainly aimed at “Wealth Creation”. Along with these measures, through this incentivising scheme GoI is attracting investments.

In all, these steps will help in boosting the economy of the country and help achieve the goal of 5 trillion USD by 2024.

Current Scenario of Electronics Market

The Electronics market in India has increased from 11 billion USD in 2015-1 to 20.8 billion USD in 2018-19. The domestic production of electronic components is around 10 billion USD. Out of this 7.7 billion USD is consumed domestically.

The market is expected to grow further with India integrating “Assemble in India” along with “Make in India”.

Month: Current Affairs - March, 2020