Government Might Infuse Rs. 45,000 Crore To Electronics Manufacturing: Report

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The government has been taking many steps to make India a manufacturing hub for smartphone makers. Now, it has been reported that the centre is reportedly planning to invest Rs. 45,000 crore, so that smartphone maker like Samsung, Apple, Xiaomi, Oppo, and Vivo can set up their supply chains in India.

 
Government Might Infuse Rs. 45,000 Crore To Electronics Manufacturing

In fact, a note has already been floated in all ministries, reports Economic Times. The report reveals that the government has divided the amount into two parts and Rs. 41,000 crore will be given to those companies who are based on a bonus scheme. Whereas, Rs. 4,000 crore to those who have reimbursement scheme.

 

"The government expects the PLI scheme to generate over two lakh jobs, exports of over Rs. 5 lakh crore and direct tax revenue of close to Rs. 5,000 crore, over a period of five years," the official was quoted by the newspaper.

It is worth mentioning that the government is also trying that the upcoming policy should be under WTO norms. The main reason behind this investment is to attract Foxconn, Huawei, Vivo, Oppo, and Samsung so that they can make a huge investment in the country.

Finance Minister Nirmala Sitharaman has also announced the same during the budget. However, she said the details will be announced later. "Given the imminent withdrawal of MEIS and limited relief provided by the proposed Remission of Duties or Taxes on Export Products (RoDTEP) in the electronics sector, there is a need to address manufacturing disabilities vis-à-vis China and Vietnam," the official said while explaining what exactly PIL scheme is.

Notably, the government might provide a five to eight percent incentive on goods that are manufactured in India. However, smartphone companies are asking for sops so they can make more investments and produce more smartphones in India.

Source

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