Page 310 - economic_survey_2021-2022
P. 310
284 Economic Survey 2021-22
global textiles map. PM MITRA inspired from 5F’s -farm to fibre; fibre to factory; factory to
fashion; fashion to foreign -will strengthen the textile sector by developing integrated large scale
and modern industrial infrastructure facility for entire value-chain of the textile industry. It is
expected to reduce the logistics cost and will help India in attracting investments, and boosting
employment generation. Competitiveness Incentive Support (CIS) of `300 Crore will also be
provided to each PM MITRA Park for early establishment of textiles manufacturing units in PM
MITRA Park. Such support is crucial for a new project which has not been able to break even
and needs support till it is able to scale up production and be able to establish its viability. PM
MITRA Park will be developed, by a Special Purpose Vehicle which will be owned by the State
Government and Government of India, in a Public Private Partnership (PPP) Mode.
Electronics Industry
8.30 World over, electronics is recognised as a ‘meta-resource’. Electronics industry is the
world’s largest and fastest growing industry and is increasingly finding applications in all sectors
of the economy. With its impact in developing infrastructure, raising productivity, increasing
efficiency in delivery of services, and enabling social transformation, it is accepted as a key
enabler in the country’s economic development.
8.31 Government accords high priority to electronics hardware manufacturing. The
government has therefore notified the National Policy on Electronics 2019 (NPE 2019) on
25.02.2019 to position India as a global hub for Electronics System Design and Manufacturing
(ESDM) by encouraging and driving capabilities in the country for developing core
components, including chipsets. Additionally, NPE 2019 attempts to catalyze the growth of
Indian electronics ecosystem through the (i)Production Linked Incentive (PLI) Schemes for
Large Scale Electronics Manufacturing, (ii) PLI Scheme for IT Hardware; (iii) Scheme for
Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS); and (iv)
Modified Electronics Manufacturing Clusters 2.0 (EMC 2.0).PLI for Large Scale Electronics
Manufacturing has been notified on April 01, 2020 which provides an incentive of 4 to 6
percent on incremental sales (over base year)to eligible companies involved in mobile phone
manufacturing and manufacturing of specified electronic components, including Assembly,
Testing, Marking and Packaging(ATMP) units (See box 3 for details on PLI scheme). As
per June 2021 Quarterly Revenue Recover (QRR) the scheme has resulted in investment of
Rs. 2,595 crore and production worth Rs.67,275 crore of which, 31 percent or Rs. 20,568
crore was exported. PLI scheme for IT Hardware was notified on March 03, 2021 which
extends an incentive in the range of 1 to 4 percent on net incremental sales (over base year) of
goods manufactured in India and covered under the target segment, to eligible companies, for
a period of four years. The target segment under PLI Scheme includes (i) Laptops (ii) Tablets
(iii) All-in-One PCs and (iv) Servers. As per Q2:FY21-22QRR, total sales of manufactured
goods in target segment stood at Rs. 503 crores with Rs. 16.50 crore investment. Further,
the government has through the SPECS scheme and the EMC 2.0 provided an enabling
environment in the form of financial incentive for capital expenditure and by creating plug
and play facilities with the view of attracting major electronics manufacturers.