The production-linked incentive (PLI) schemes for mobiles and laptops were launched with much fanfare earlier this year and were touted as catalysts for investments and increased production.
The PLI scheme for mobiles was notified in April 2020 for a period of five years to provide incentives of 4-6 percent on incremental sales. It saw a huge interest from global heavyweights, with the likes of Samsung, Foxconn, Wistron and Pegatron applying for it. There was palpable interest even among domestic players with firms like Lava and Micromax trying to fashion a comeback of sorts.
Despite the pandemic, the first five months alone saw production worth Rs 35,000 crore, additional investments of Rs 1300 crore while more than 22,000 new jobs were created. In the April-June quarter of FY22, mobile exports grew by a whopping 250 percent to Rs 4600 crore and the imports plummeted by over 80 percent from Rs 3200 to just Rs 600 crore.
The icing on the cake was the government allowing the plea from the industry to extend the term of the scheme from FY25 to FY26, which allows applicants to pick FY22 as the base year.
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Moreover, Apple iPhone manufacturer Pegatron is expected to begin production by end of this calendar year while the industry hopes exports to double to worth Rs 50,000 crore.
However, the PLI scheme for IT hardware targeted at laptops, tablets, all in one PCs and servers is not quite yielding the desired results yet.
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