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What is the PLI scheme for semiconductor goods?. Why is it significant?.
The centre has recently announced Rs 76,000 crore PLI scheme for encouraging semiconductors manufacturing in the country. This scheme will be in form of subsidies that the government will give to semiconductors manufacturers.
The PLI scheme for semiconductors
- Production based incentives
The government will give certain amount as financial assistance for semiconductors manufacturers. The amount will increase as they increase their production and sale.
- Infrastructure creation
The government will also help in creation of associated infrastructure such as land availability, connectivity, water and electricity supply etc.
Role of scheme in making India electronics manufacturing hub
- Attract global players
Global giants of electronics and semiconductors manufacturing will be attracted by the incentive schemes as government itself has given guarantee of returns.
- Local investments
Local companies, which were worried about risks to set up units, will now be assured of government help. They can succeed after fine tuning their business model.
Benefits of the scheme
- Employment
The scheme will attract many manufacturers to set up manufacturing units in the country. This will generate employment as well as boost local economy.
- Self sufficient
India is entirely dependent on imports for semiconductor chips. Local manufacturing will make us self-sufficient and less vulnerable to changing global politics.
- Cheaper goods
Currently, the prices of electronic goods as well as automobiles have increased as a result of lack of availability of semiconductor chips. Easy access can reduce prices.
Thus, the PLI scheme will be a good opportunity for Indian companies to start investing in semiconductor manufacturing and help in nation building.
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