The production-linked incentive (PLI) plan will help India export IT goods worth 2.45 trillion rupees, a 73.5 billion rupee ($1.02 billion) plan to boost local manufacturing and exports of IT products such as laptops, tablets, personal computers, and server.
This Production- link Incentive will provide manufacturers cash-backs of between 1% and 4% of additional sales of locally made goods over four years, with 2019-2020 as the base year. The focus of the scheme is to get global champions to India and to make national champions out of local manufacturers, the plan could create roughly 180,000 jobs. The PLI plan is also likely to help U.S. tech giant Apple Inc assemble some of its iPad tablets in India.
Prime Minister Narendra Modi’s policy push in the electronics sector has prompted Apple suppliers Foxconn and Wistron to expand in India and driven Pegatron to set up a base there. The three Taiwan companies have committed to invest roughly $900 million to make iPhones in India as part of a $6.7 billion Production- Linked Incentive plan launched by the government last year.
Modi’s strategy, coupled with India’s huge market, has also helped turn the country into the world’s second-biggest mobile maker after China.
