Welc lcom ome e to to the the launch of Electro troni nics - PowerPoint PPT Presentation

Welc lcom ome e to to the the launch of Electro troni nics Manufa facturin turing g Schemes mes PLI, SPECS S & EMC2.0 .0 02 02 June 2020; 12:00 0 noon

Electronics Industry in India: A Snapshot CAGR: Production - 25% | Imports - 11% | Exports - 10%  Government policies and initiatives led to significant growth in electronics manufacturing  India’s share in global electronics manufacturing grew from 1.3% (2012) to 3.0% (2018)  Rapid growth in exports lately: 38% Y-o-Y in 2018-19

National Policy on Electronics 2019 1. India to be Global Hub for Mobile & Components Manufacturing and Exports 2. Attract Global Lead Firms along with Supply Chain to India 3. “Make in India for the World” : Mobile Phones to be largest exported item GDP TAX JOBS

Electronics- Growth Drivers Mobile Handsets (Units in million) LCD/LED TVs (Units in million) LED Products (in USD billion) 2.00 2.00 1.80 1.48 1.60 1.40 1.09 1.20 1.00 0.78 0.80 0.60 0.33 0.40 0.20 - 2014-15 2015-16 2016-17 2017-18 2018-19 Domestic Value Addition: 15-20% Domestic Value Addition: 12-15% Emerging Verticals Auto Telecom Medical Industrial Strategic Electronics Products Electronics Electronics Electronics

Growth in Mobile Manufacturing 2014 2019 Mobile manufacturing 2 >200 units Number of Mobile 60 million 290 million handsets produced* Value of mobile $3 billion $30 billion handsets produced* India has emerged as the second largest manufacturer of mobile handsets in the world * Data refers to the financial year

New Schemes for Electronics Manufacturing Production Linked Incentive Large Scale Mobile Scheme (PLI) Manufacturing 5 Year Outcomes INR 8.0 Lakh Cr Production Scheme for Promotion of (USD 106 Bn) Domestic Electronics Manufacturing of Supply Chain of INR 5.8 Lakh Cr Components and Components Exports Semiconductors (SPECS) (USD 77 Bn) Employment 10 Lakh Infrastructure and Electronics Manufacturing Common Facilities Cluster Scheme (EMC 2.0) Total incentives of up to INR 50,000 Crore (~ $6.7 Bn)

Production Linked Incentive (PLI) Incentive Target Segments Outlay 4% - 6% Mobile Phones and ~INR 40,995 Cr Production Linked Electronic Components ($5.5 Billion) Incentive for a period of 5 years Tenure Application Date Initial Phase of 5 Years Applications upto Base Year: FY 2019-20 31.07.2020 • Minimum Thresholds of Investment and Production per Company for eligibility • Ceiling on Annual and Total Incentive per Company • Incentives applicable from 01.08.2020 For the Gazette Notification check https://meity.gov.in/esdm/PLI

PLI Portal: https://pli.ifciltd.com For more information write to: pli@ifciltd.com 8

PLI Portal: https://pli.ifciltd.com For more information write to: pli@ifciltd.com 9

Scheme for Promotion of Electronic Components and Semiconductors (SPECS) Incentive Target Segments Outlay Active & Passive 25% ~INR 3,285 Cr Components, ($440 Million) Incentive on Capital Semiconductors, ATMP, Expenditure, on Specialized Sub Assemblies reimbursement basis Minimum Investment Tenure Eligible Capex Threshold 3 Years for Filing Plant, Machinery, INR 5 Cr (USD 670K) to Applications; 5 Years for Equipment, R&D, INR 1,000 Cr (USD 130M) Investment Utilities, ToT For the Gazette Notification check https://meity.gov.in/esdm/SPECS

SPECS Portal: https://specs.ifciltd.com For more information write to: specs@ifciltd.com 11

SPECS Portal: https://specs.ifciltd.com For more information write to: specs@ifciltd.com 12

Modified Electronics Manufacturing Cluster Scheme 2.0 (EMC 2.0) EMC Project Common Facility Centre (CFC) Outlay 50 % of Project Cost 75% of Project Cost ~INR 3,762 Cr ($500 Million) Ceiling: INR 70 Cr for Ceiling: INR 75 Cr every 100 acres • Large Manufacturing Clusters (Min land area 200+ acres, 100 acres for NE & Hill States) • Anchor Units (Commitment: 20% Land Area, INR 300 Cr+ Investment) • Plug & Play Infrastructure, Common Facility Centres • Project Implementation Agency – State Implementing Agency, CPSU, SPSU etc. For the Gazette Notification check https://meity.gov.in/esdm/emc2.0

EMC2.0 Portal: www.emc20.stpi.in For more information write to: emc@meity.gov.in 14

EMC2.0 Portal: www.emc20.stpi.in For more information write to: emc@meity.gov.in 15

Scheme Outcomes

Impact of New and Existing Schemes S. Impact on Mechanism Remarks No Disability (%) PLI 4% - 6% Financial incentive on large scale production 1. SPECS 0-1.6% 20% Capex Subsidy annualised on 8% Capital Cost 2. 3. EMC 2.0 1% Logistics, Plug and Play Infrastructure In lieu of MEIS as a Duty-Free Scrips administered by RoDTEP 0.2% - 0.7% 4. DGFT Concessional Rate of 0.2% - 0.9% 5. Income Tax Ease of Doing Custom Bonded Warehouse, Port Logistics, ECB 0.5% 6. Business Measures Reforms Total 5.9% - 10.7%

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