22 March 2020 Current Affairs:The union government has proposed a total outlay for the EMC 2.0 Scheme at ₹3,762.25 crore, which includes the financial assistance of ₹ 3,725 crore and administrative and management expense to the tune of ₹37.25 crores over a period of eight years.
The new Production-linked Incentive Scheme (PLI) would not only support the Government’s efforts to establish India an integral part of the Global Value Chain (GVC) in the mobile handset. The union government announces a policy that can be a game-changer taking the sector to the next level, and PLI is precisely that. Its visionary, scalable, and global in its outlook.
The Scheme will create a robust infrastructure base for the electronic industry to attract a flow of investment in the ESDM sector and lead to greater employment opportunities. Currently, 85 percent of the global mobile exports are catered to by two countries - China and Vietnam. Further, only three global ecosystems - Samsung, Apple, and Chinese majors such as Oppo, Vivo, Xiaomi, and Huawei, dominate the multi-billion-dollar mobile phone export. It is well-recognized that India suffers a manufacturing disability vis-a-vis China (19-23 percent) and Vietnam (9-12 percent).