4) Electronics Incentive schemes

Question 1

Context ?

Answer 1

Govt has launched a total outlay of 48000 cr to boost large scale manufacturing of electronics in the country

Question 2

What are the schemes ?

Answer 2

1) Production Linked Incentive
2) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
3) Modified Electronics Manufacturing Clusters

Question 3

Features of Production Linked Incentive ?

Answer 3

1) Targeted at mobile phone manufacturing and specified electronic components
2) Govt initially plans to incentivise 10 firms - 5 global and 5 local
3) Scheme shall include an incentive of 4-6% on incremental sales of goods manufactured in India

Question 4

Features of SPECS ?

Answer 4

To provide financial incentive of 25% on capital expenditure for identified list of electronic goods i.e electronic components, semiconductor fabrication units etc

Question 5

Features of Modified Electronic Manufacturing Cluster ?

Answer 5

It shall provide support for creation of world class infrastructure along with common facilities and amenities including Ready Built Factory (RBF) sheds for attracting major global electronics manufacturers

Question 6

Significance of these schemes ?

Answer 6

Govt aims to manufacture electronics worth 8 lakh cr while generating employment for about 10 lakh people in the next 5 yrs