"The proposals will create 300,000 direct and 900,000 indirect jobs. The domestic value addition is expected to grow from the current 15-20 per cent to 35-40 per cent in case of mobile phones and 45-50 per cent for electronic components," the minister said.
Currently, India exports only $1.6 billion-worth of mobile devices. That works out to less than 0.5 per cent share of the global exports of devices.
According to ICEA, the new move could push India up in the top three league for mobile handset exports. The manufacturing of mobile handsets, which has been a top priority of the government, is a focus area of the National Policy on Electronics 2019 with a target of 1 billion mobile handsets by 2025, valued at $190 billion, including 600 million mobile handsets for export.
PLI scheme for large scale electronics manufacturing was notified on April this year. The Scheme extends an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year. The scheme was open for filing applications till 31 July and incentives are applicable under the scheme from August 1.