The Indian government plans to permit Chinese firms to obtain production-linked incentives (PLI) for electronics manufacturing under the Electronics Component Manufacturing Scheme. CNBC-TV18 stated that Chinese firms can qualify for PLI only if they establish a joint venture with an Indian firm.
According to the CNBC-TV18 report, Chinese firms must create a joint venture with an Indian firm to qualify for policy-related incentives. Chinese firms are restricted to a maximum 49 percent ownership in the joint venture. Furthermore, the oversight of the management of the joint venture should stay with the Indian firms.
The report indicated that a crucial aspect of the joint venture is the transfer of technology. As per the terms, the joint venture must include the technology transfer from the Chinese firms.
The Electronic Component Manufacturing Scheme (ECMS) is an initiative introduced by the government to enhance the local production of electronic components such as mobile and IT hardware, electro-mechanical devices, display modules, camera modules, and more.
The plan aims to draw in Rs 59000 crore from both Indian firms and international investors, and it is expected to generate 91000 employment opportunities in the nation. According to the type of component, the program provides various incentives based on revenue and capital spending.
Numerous leading Indian firms are looking to invest in the manufacturing of electronic components. Dixon Technologies, a leading electronics manufacturing firm in India, has announced its intention to invest in component production. Tata has shown interest in investing ₹2000 crores in the manufacturing of electronic components.