Taiwanese electronics major Pegatron’s new mobile phone manufacturing facility, set up under Centre’s popular Production Linked Incentive scheme (PLI), in an industrial park in Chengalpattu near Chennai, will be inaugurated tomorrow.
The Union Minister of State for Electronics and Information Technology, Shri Rajeev Chandrasekhar will be attending the event as a guest of honour.
The PLI Scheme has catalysed growth in India’s electronics manufacturing sector which as per Shri Chandrasekhar was in a “moribund state devastated by Flawed FTAs, corruption and red tape until the year 2014”.
Mobile phone production, which had sunk to Rs.18,900 cr in 2014-15 is now up over 14 times, to Rs.2,75,000 cr – of which a 28% jump of Rs.60,000 cr was recorded within the first year of the Scheme.
It is pertinent to mention that Mobile phone exports in India in 2015-16 were near zero. Propelled by the PMP and PLI Schemes, they reached Rs.27,000 cr in 2019-20, and within the first year of PLI Scheme, saw a 66% increase to Rs.45,000 cr. In a YOY comparison for the first 5 months of April-August, mobile exports are up 140% to Rs.25,000 cr from Rs.10,300 cr
Pegatron’s India subsidiary Pegatron India, which will be operating the facility, has committed an investment worth crores during the tenure of the Scheme and expected to generate thousands of direct jobs in the sector. It will be manufacturing and assembling mobile phones thereby augmenting mobile phone manufacturing and exports from the state of Tamil Nadu.
Apart from Pegatron, Foxconn Hon Hai Technology India Mega Development Private Limited, Dell, Ascent Circuits, Bharat FIH have also committed crores of investments in Tamil Nadu under Centre’s PLI Scheme to ramp up their capacities to make in India for the World.
The new Pegatron facility at Chengalpattu is expected to add to the momentum—both in terms of capacity and employment for the people of Tamil Nadu, which has emerged as one of the major electronics hardware manufacturing states, with 20% of India’s production.
About Pegatron Corporation
It is a Design and Manufacturing Service (DMS) Company, has been at the forefront of technological advances in the field of communication devices, computing devices, consumer electronics. Pegatron Corporation is ranked the 2nd largest global EMS company by Manufacturing Market Insider (MMI) and # 235 in Fortune Global 500 in 2021. has manufacturing facilities spread across South East Asia, India, Europe, America. Pegatron’s India subsidiary Pegatron India, was incorporated in July 2020.
Production Linked Incentive Scheme (PLI)
Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units. The Scheme would tremendously boost the electronics manufacturing landscape and establish India at the global level in electronics sector.