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New Delhi: Union IT and Electronics Minister Ashwini Vaishnav on Monday said the Indian government has started working with smartphone companies to shape the next phase of the production-linked incentive (PLI) scheme.
Speaking to the media on the sidelines of an event here, the minister said the aim is to increase the share of locally made components in smartphones and key electronics to 35-40 per cent in the next few years.
He said the 24 electronics component projects sanctioned under the current scheme – along with the new investments expected under ECMS 2.0 – will play a major role in boosting domestic value addition.
According to the minister, this growth will happen gradually as more components start being completely manufactured in India.
“We expect significantly higher local value addition. I think by the time the electronic components start being fully manufactured we will reach the 35-40 per cent range,” Vaishnav told reporters.
Vaishnav also reiterated that the government plans to design and manufacture 30 strategic chipsets within the country.
“These chipsets will serve as the backbone of India’s semiconductor ambitions, strengthening its ability to become a global technology manufacturing hub,” he said.
The minister confirmed that work on PLI 2.0 for smartphones is underway with industry stakeholders. The current plan, which will end this fiscal year, is widely considered the most successful of India’s stimulus programs.
This has brought major global manufacturers to India and helped the country emerge as a leading smartphone production hub.
Industry leaders have welcomed the move. ICEA Chairman Pankaj Mohindroo said that India is entering a new phase of development.
He said, “Electronics manufacturing revolution is on the way. ECMS is a turning point in India’s electronics manufacturing journey. This scheme is the catalyst that will create one of the world’s most competitive ecosystems in components, sub-assemblies and capital goods.”
“Once we master the machines, we master the market. ECMS will establish global value chains in India, create globally competitive Indian champions in every major product sector, and accelerate our march towards the Prime Minister’s vision of $500 billion in electronics manufacturing. This is India’s next industrial revolution, and we are fully committed to delivering it,” Mohindru said.
–IANS