The government is looking to increase job creation as it is currently becoming a major concern. Due to this, MeitY may bring a combined idea to solve the problem of employment and lack of domestic manufacturing. MeitY is looking for ideas to create 1.5-2 jobs for every 1 Crore rupees invested in electronic components through the PLI scheme. Thus, the successful investment of Rs. 10,000 crore will create 15,000-20,000 direct jobs in the market. However, there are a lot of challenges in implementing the plan that may hamper the economy’s growth in the long term.
What Efforts The Government Is Putting For The Job Creation?
The government is planning to solve the issue of job creation with the ongoing PLI scheme for Electronic components. Thus, every investment of Rs. 1 crore in the electronic components PLI scheme will be able to generate 1.5-2 jobs. However, it is easier said than done. The companies and the Industry representatives state that the government is becoming overly positive about employment. Providing 1.5-2 jos per 1 crore investment seems difficult.
It is the main reason why there is still no conclusion on this decision. The Ministry of Electronics and Information Technology (MeitY) is evaluating the proposal. Apart from that, they have two options to implement this decision. The first one is by providing additional incentives to eligible companies that meet the employment requirement every year. The other one is to repay the incentives as the company archives the target.
The current proposal of the scheme will include different electronic components. They are camera modules, display assemblies, mechanical parts, battery packs, and vibrators. If we talk about electronic components, we may start assembling smartphones and other electronics in our country. We still depend on imports for the electronic components. We don’t have enough manufacturing in our country. Thus, it leads to a huge dependence on China, which is the largest in the electronics segment.
Thus, the promotion of domestic manufacturing can help escalate both issues. It will provide more work opportunities to the companies increasing their business which will lead to more hiring and job creation. The July budget also focused on increasing manufacturing in the country. If manufacturing will not increase, the country will not be able to become independent. We all know India has a good demand for electronics. Despite this, the country has only 20% of the devices manufactured in India. MeitY’s officials state that they are still looking to create direct employment for the employees. Stay tuned for more information.