Mobile imports: PLI scheme has helped reduce India’s dependence on China, says Crisil report – Times of India

of the Government of India phased manufacturing program (PMP) and production linked incentive ,PLIThe plans for the mobile industry in the country seem to be working. According to a new report by Credit Rating Information Services of India Limited (CRISIL), there has been a boom in the production of mobile phones in India after the government introduced these schemes, reducing the country’s imports and dependence on China.
After registering 33% compound annual growth rate (CAGRBetween fiscal years 2016 and 2021, domestic mobile production is projected to grow 24-26% over 2012. Despite the ongoing chip shortage, the three global manufacturers have met PLI production targets during the financial year, the report said.
CRISIL Research Production is expected to maintain the pace of growth with a CAGR of 22-26% between FY 2022 and 2024 in the range of Rs 4.0-4.5 lakh crore in value terms. The development is to be led by the PLI scheme, which is in the second year for most players.
“As a result, the country’s mobile imports declined by 33% annually in FY22. Dependence on China declined from 64% to 60% in FY21, and is expected to fall further in the medium term. However, with increasing production, imports of electronic components required for mobile assembling/manufacturing also increased by 27% year-on-year,” the report claims.
What is PLI Scheme
The Production Linked Incentive Scheme (PLI) for large scale electronics manufacturing was announced in April 2020. It provides production-linked incentives to promote domestic manufacturing and attract investment in specified electronic components including mobile phone manufacturing and assembly, testing, marking and packaging (ATMP). ) units. The objective of the scheme is to boost the electronics manufacturing landscape and establish India at a global level in the electronics sector.
The scheme will provide an incentive of 4% to 6% to eligible companies on incremental sales (over base year) of manufactured goods in India, falling under target segments, for a period of 5 years after the defined base year.