The government has set a target to get around Rs 18,000 crore investment in the electronics manufacturing segment by 2021-22. The finance ministry has allocated Rs 2,631.32 crore for various schemes to boost electronic manufacturing in the country, including Production Linked Incentive (PLI) scheme, Modified Special Incentive Package Scheme (MSIPS), Electronics Manufacturing Cluster (EMC) scheme and electronic development fund.
The government has set a target of getting “incremental investment by mobile companies and electronics manufacturing units approved under the PLI scheme” of Rs 1,000 crore and expects one lakh people to be employed by the approved companies till FY 2021-22. A sales target of Rs 10,000 crore for mobile sector PLI companies has been set for 2021-22 alone. Separately, the government has set a target to get capital investment of Rs 5,000 crore from electronics manufacturing companies that have qualified for MSIPS and create employment for 25,000 people in the next fiscal. The government has set a target to attract investment of Rs 6,000 crore under the EMC scheme and Rs 5,000 crore under modified EMC scheme in 2021-22.
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It has kept “projected employment in EMCs” at 10,000. The companies that are under scheme for promotion of manufacturing of electronic components and semiconductors are expected to invest Rs 1,000 crore and employ 10,000 people in 2021-22, according to the budget document. Besides, the fund allocated for the electronic manufacturing sector includes Rs 49 crore as the government’s contribution in the electronic development fund that will be invested in 10 start-ups through daughter funds.