The Central Government on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS). Rs 62,500 crore will be spent on this scheme and it will be implemented for five years. Union Electronics and Information Technology Minister Ashwini Vaishnav told after the cabinet meeting that under this scheme, companies will be given incentives on the basis of domestic sourcing of components, design and research and development (R&D) in India. Apart from this, there will also be separate incentives to increase smartphone exports.
Target of production of Rs 39 lakh crore
The government aims to produce mobile phones worth Rs 39 lakh crore during the period of this scheme. Under the earlier implemented Production Linked Incentive (PLI) scheme, about Rs 22 lakh crore was produced.
Mobile export target of Rs 15 lakh crore
Under the new scheme, the government has set a target of exporting mobile phones worth Rs 15 lakh crore. During the last PLI program, smartphones worth Rs 7.5 lakh crore were exported from India. Today smartphones have become one of India’s biggest export products.
Notification will be issued in 20 days
Ashwini Vaishnav said that the notification of this scheme will be issued in the next 20 days. The government estimates that this scheme will generate 60,000 direct jobs. Apart from this, new employment opportunities will also be created in other industries related to this.
Emphasis on giving global recognition to Indian brands
The aim of the government is to create an Indian mobile brand that can compete in the global market. This scheme will also help in making India more technologically self-reliant by promoting research, innovation, patents and new technologies.
The main demand of the industry was
Major mobile phone manufacturing companies like Dixon Technologies, Foxconn and Tata Electronics had been demanding for a long time to extend the PLI scheme started in 2020. The new MPMS scheme is being considered a big step in that direction.
Great results of the last PLI scheme
According to the government, an incentive of Rs 19,090 crore was given under the previous PLI scheme. At the same time, the government received direct tax of Rs 25,000 crore and GST of Rs 3 lakh crore from the smartphone industry.
An investment of Rs 20,587 crore was made under this scheme, which was three times more than the set target. Smartphones worth Rs 11.61 lakh crore were produced during the plan, which was 142% more than the target. At the same time, exports worth Rs 6.43 lakh crore were made, which was 132% more than the set target.
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