Why in news
- Union Government notified a dedicated mobile phone manufacturing scheme offering targeted incentives for domestic brands.
What is the scheme?
- A successor framework building on the earlier Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (2020–2025).
- Administered by the Ministry of Electronics and Information Technology (MeitY).
Key provisions
- Offers graded financial incentives tied to incremental sales and local value addition.
- Before: Legacy PLI focus was broadly split between global contract manufacturers and domestic firms.
- After: Higher incentive slabs are earmarked for domestic Indian brands to strengthen local IP and supply chain depth.
Why it matters
- Promotes backward integration, sub-assembly manufacturing, and creation of domestic champion enterprises.
Key terms
Value Addition
The increased percentage of component procurement and manufacturing done locally relative to total product cost.
Prelims facts
- MeitY implements production-linked incentive schemes for hardware and electronics manufacturing.
Mains discussion
- Challenges in moving from electronics assembly to local value addition and domestic component manufacturing.
Source: The Hindu
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