Smartphones, components worth Rs 11.5 lakh crore to be manufactured in India in next 5 years: Ravi Shankar Prasad

Union IT Minister Ravi Shankar Prasad on Saturday stated that Rs 11.5 lakh crores worth mobile phones and components will be produced in India in the next five years under the Production-Linked Incentive (PLI) Scheme.

He said that around 22 companies have applied under the scheme.

These companies will produce mobile phones and components in India worth Rs 11.5 lakh crores in the coming five years, out of which products worth Rs 7 lakh crores will be exported," Prasad said while addressing a press conference on Saturday.

He said these companies will create three lakh direct and around nine lakh indirect jobs.

Prasad said this scheme is not against any country, it is only India positive. 

"I do not wish to take the name of any country. We have got proper rules and regulations with regard to our security, bordering countries, all those compliances are important," he said."We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country," he added.

Prasad said that PLI Scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers.The PLI Scheme, which extends an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies for a period of five years subsequent to the base year, for large-scale electronics manufacturing was notified on April 1, 2020.

"Over the next five years, the scheme is expected to lead to total production of about Rs 11.5 lakh crore. Out of the total production, companies under mobile phone (invoice value Rs 15,000 and above) segment have proposed a production of over Rs 9 lakh crore, the companies under mobile phone (domestic companies) segment have proposed a production of about Rs 2 lakh crore and those under specified electronic components segment have proposed a production of over Rs 45,000 crore," the Ministry of Electronics and IT said in the statement.

Prasad further said that the scheme will help in making India a competitive destination for electronics manufacturing and give a boost to AtmaNirbhar Bharat.

(With ANI inputs)