The government is going to announce the budget 2024. The discussion is going on that the government might introduce PLI Scheme worth Rs. 40,000 Crore in the electronics sub-assemblies and components. China is the current big player in the electronics. The country is so advanced and scaled the business up to the next level. Thus, this budget is going to help India’s electronics market rock as well. Let us have a deeper understanding of the government’s upcoming PLI scene investment below.
The Government Will Invest ₹40,000 Crores In PLI Scheme For Electronics Sub-Assemblies And Components
The government is planning to invest Rs. 40,000 Crores in the PLI scheme to improve India’s position in the electronics market. The upcoming budget is special for the country as it has a lot of progressive things taking the country ahead this year. The 2024-25 budget will have a high amount invested in the PLI schemes. It refers to the Production Linked Incentive. The government has already worked on it since the interim budget in February 2024. However, the scheme is for the benefit of the electronics industry. However, the main concern is finding the companies that will be willing to participate in the scheme.
There is a lot of conflict in the manufacturing. The major concern is finding the companies that will join the PLI scheme. While those who join these PLI Schemes find it difficult to meet all the criteria and fall behind the local sourcing norms. The major challenge is India does not manufacture the high-quality components needed. It is going to be tough. Moving the market from one place to another place is not an easy task. China is the leader in the industry. Thus, it manufactures the majority of the electronic components. India will be shifting the market. The task needs a lot of effort. According to the data, the electronics components ecosystem belongs to China by 90%.
If we make a comparison, India is far behind in the race. China exports almost $900 billion of electronics products. While India is only able to export around $15 billion. Other countries like Vietnam are moving ahead of the others. Whenever Chinese supplier wants to purchase outside China, they consider purchasing from Vietnam. In conclusion, the government is planning to make a huge investment in the PLI schemes that will help empower India’s electronics sub-assemblies and components. There will be a lot of challenges hereby. Thus, the major challenge will be finding the companies that will participate in the PLI scheme.