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Source: IBEF

“On Friday, Mr. Ravi Shankar Prasad, Minister of Communications, Electronics and Information Technology (IT), stated that the domestic manufacturing of electronic devices, including cell phones and parts, televisions and laptops, is expected to contribute one-fifth to India’s economy by 2025.

At an event organised by industry body Assocham, Mr. Prasad said, “You spoke of the US$ 5 trillion economy. We would be able to add US$ 1 trillion to the country’s economy through proper scaling of electronics output by this development alone. This is what I am aiming for.”

For 2025, the government has set a development target of one billion cell phones, 50 million televisions and 50 million hardware devices such as laptops and tablets. Mr. Prasad stated that India needs to become the world’s top electronic device manufacturing destination.

Following the success of a scheme to manufacture cell phones and their components locally, the government aims to expand the production-linked incentive (PLI) scheme to domestic laptop and tablet manufacturing.

There are 16 global and domestic mobile and electronic component manufacturers, including Samsung, Foxconn and Bhagwati Products, the Micromax phone manufacturer, which will benefit from the PLI scheme launched in April 2020 by the Centre to improve local manufacturing.

Rising Star, Wistron and Pegatron are the other qualifying foreign phone manufacturers. Except for Samsung, the contract manufacturers for Apple Inc. are other foreign firms. Samsung and Apple together account for about 60% of global smartphone sales.

Mr. Prasad said on Friday that India is not going to compromise on data sovereignty. He said it is possible to acquire data from Indians with consent and use it for refining.

Under the PLI framework for cell phones, the government will offer 4-6% incentives for qualifying electronic businesses to increase sales of manufactured goods for five years, including mobile phones and electronic components such as printed circuit boards and sensors.

Incentives have also been applied to other industries for the local production of products. In November 2020, the Union Cabinet approved the PLI scheme for 10 industries, including the manufacture of telecommunications equipment, which earned an outlay of Rs. 12,195 crore (US$ 1.66 billion).”