The Government Announced Rs 36,000 Crore Fund To Boost Local Manufacturing

Make in India is an initiative created to boost domestic production through a special fund. The Indian government, while announcing the Budget 2020, said that it will apply new measures in order to increase the strength of local manufacturing of phones and components. And the government will now take the initiative a step further for promoting local mobile device manufacturing. The government will also focus on locally producing electronic components as well as semiconductor packaging. The scheme, hopefully, will create more jobs for Indians.

According to an earlier report from Economic Times, the Indian government was preparing a Rs 36,000 crore fund, which is meant for providing incentives for smartphone makers regarding the production process. The government has also been looking to bring its efforts in electronic manufacturing in a realm similar to that of China and Vietnam. As China is facing a trade war and its role in electronics manufacturing is changing, India wants to become the substitute for that. Now, the special fund can serve as a way for the sector that mainly focused on high-value addition components and mobile phones.

ET recently reported that this move will generate a momentum that’s needed to build the mobile phone industry worth $190 billion. It’s noted by ICEA chairman Pankaj Mohindroo that the move will additionally aid in an export target of $100 billion, which was envisaged in the 2019 National Policy on Electronics. At the time, the policy target was manufacturing 100 crore phones in India by 2025, equal to Rs 13 lakh crore, 60 core of which were for exports with a total value of about Rs 7 lakh crore.

It’s further noted in the report that the electronic equipment value manufactured in India has risen to Rs 4.58 lakh crore in the 2018-2019 period, the number was Rs 1.9 lakh crore between 2014 and 2015. “Electronics manufacturing industry is very competitive, and India has shown its cost advantages. The potential of this industry in job creation is immense,” said Finance Minister Nirmala Sitharaman. But the government should take cautious steps as some industry watchers said that it needs to build up an ecosystem before expanding its efforts in local manufacturing.

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