PLI for mobile production may begin from 2022

The government is thinking of making FY22 the first year of production instead of FY21 for the production-linked incentive (PLI) scheme for mobile phone manufacturing due to pandemic curbs and global supply chain disruptions. If the proposal gets the government’s nod, the move will bring relief to the likes of iPhone contract makers Foxconn and Wistron besides homegrown brands Dixon, Lava and Micromax.

Once this move is approved, it will mean that manufacturers need to post incremental production worth Rs 4,000 crore in this fiscal year, instead of Rs 8,000 crore in the second year. The mobile phone industry will also be able to avail maximum incentives worth 6% during the year. Welcoming the move, IDC research director Navkender Singh said, “If this (change in timeline) comes through, this will have a several-fold impact. It will send the right signals to all the international investors that the government is there to support them in these pandemic times.”