The Indian government has consistently supported local electronics manufacturing through its PLI scheme, which was announced in 2020. The scheme provides manufacturers with graded incentives in the form of cashback.
Following the scheme, the government approved another tranche of Rs 765 crore in financial incentives for large-scale electronics manufacturing. It is said that the empowered committee had approved the incentives at its meeting yesterday, March 14.
PLI Scheme Incentive Releases March 2023
According to an ET report, Apple’s contract manufacturer Wistron will receive Rs 601.93 crore, followed by Rs 149.63 crore for Indian contract manufacturer Padget (Dixon Technologies), based on data provided by industry body India Cellular and Electronics Association (ICEA) on Tuesday.
The report also reveals that the government approved incentives for component manufacturers AT&S, Shogini, and Alcon Electronics, each of which received Rs. 7.58 crore, Rs. 3 crore, and Rs. 2.40 crore, respectively.
Incentives under the PLI scheme are graded, starting at 6% of incremental sales of goods in the first two years, 5% in the third and fourth, and 4% in the fifth. This has attracted many foreign contract manufacturers to set up a plant in India.
Pankaj Mohindroo, CEO of the ICEA, praised the effective collaboration between businesses, governments, and regulators, noting that,
Enthused to feel the vigour in the electronics manufacturing space. Nation is seeing a new era of great coordination between industry and policy makers/implementers.