The government’s Production Linked Incentive (PLI) scheme has resulted in local value addition of 20 per cent in mobile manufacturing within a three-year span, per the DPIIT.
“We have been able to increase the value addition in mobile manufacturing to 20 per cent within 3 years whereas countries like Vietnam achieved 18 per cent value addition over 15 years and China achieved 49 per cent value addition in over 25 years. Seen in this perspective, it is a big achievement,” DPIIT Secretary Rajesh Kumar Singh said at a press briefing on Tuesday.
The PLI scheme for Large Scale Electronics Manufacturing (LSEM) and the existing Phased Manufacturing Program (PMP) have led to increased value addition in the electronics sector and in smartphone manufacturing, 23 per cent and 20 per cent, respectively, from negligible in 2014-15, a DPIIT note pointed out.
Of the $101-billion total electronics production in 2022-23, smartphones constitute $44 billion including $11.1 billion as exports.
“As much as 82 per cent of total mobile phone exports in 2022-23 was by PLI companies,” figures compiled by the DPIIT show.
iphone exports
By 2024-25, iPhone 14 exports are likely to touch $10 billion, according to government estimates. As on date, 733 applications have been approved in 14 sectors with expected investment of ₹3.65-lakh crore, the note underlined.
A total of 176 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones.
“Actual investment of ₹62,500 crore has been realised till March 2023 which has resulted in incremental production/sales over ₹6.75-lakh crore and employment generation of around 3,25,000. Exports boosted by ₹2.56-lakh crore till 2022-23,” the note stated.