 "ELECTRONIC")
The Ministry of Electronics and Information and Technology, together with industry stakeholders like the Indian Cellular and Electronics Association (ICEA), is finalising a plan for global roadshows to reach out to potential investors and companies to sell and participate in the ₹22,919 crore production-linked incentive (PLI) scheme for electronic components.
The countries identified for the roadshows include South Korea, Japan, Taiwan, and the United States, the geographies in which big companies manufacturing electronic components are based. Top officials in the ministry as well as representatives of industry bodies will be part of the delegation. The scheme was announced recently and will close in three months. The government expects to bring in investment worth $6.94 billion and generate $53.3 billion in revenue over six years. It is expected to help in increasing the localisation of electronic products as well as make India a hub for export.
The government and the industry are drawing up the names of companies that could show an interest in the scheme or have done so. These include Murata Manufacturing Company, TDK Corporation, and NIDEC Corporation (Japan); Compal and Unimicron (Taiwan); printed circuit board maker Simmtech (South Korea); and American companies Molex and Amphenol, makers of connectors, and Texas Instruments, manufacturers of resistors and capacitors.
Apart from incentives under the scheme, the ICEA has approached state governments to provide additional incentives, either on capital investment or on production. Executives say they have approached Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh, and Gujarat. The Tamil Nadu government has been first off the block with an announcement on matching the central-government incentive if the PLI-eligible company is willing to invest in the state.
Based on the preliminary interest of companies, industry associations project investments of ₹20,000 crore with many firms already announcing their plans. These include Amber Enterprises, which will put in ₹1,500 crore-2,000 crore for a PCB plant, Dixon Technologies, which will invest ₹800 crore for display and camera modules, and mechanicals; and Munoth, which has invested ₹175 crore in lithium ion battery cells. The scheme covers electronic components such as PCBs, lithium ion cells, enclosures for mobile and information-technology hardware products, and electro-mechanicals. There is also the subassembly of display and camera modules. The incentives are pegged to the turnover or given for capex. The PLI scheme is part of the government’s plan to hit $500 billion in electronics production by 2030. The aim is to have over $200 billion from exports.
It means that the country has to hike production by nearly fourfold from what it was in FY24. India’s share in global electronics production is more than 2 per cent as against China’s 60 per cent.
MEGA OUTREACH
- Roadshows are being planned in key countries that have vibrant electronics component companies
- A plea is being made to global investors to manufacture in India and establish it as an export hub
- Key companies are being identified for direct interaction regarding the benefits of the scheme
- The state governments have been approached to offer additional incentives beyond those provided under the PLI scheme
