"I propose a scheme focussed on the manufacturing of mobile phones, electronic equipment and semiconductor packaging. The details will be announced soon," Finance Minister Nirmala Sitharaman said while presenting the Budget for 2020-21.
She added that with suitable modification, this scheme can be adopted for manufacturing of medical devices as well.
"India needs to manufacture networked products that will make it a part of the global value chain. This, in turn, gets more investments and generates more employment for our youth," Sitharaman said.
She added that electronics manufacturing industry is very competitive and India has shown its cost advantage.
Sitharaman pointed out that the potential of job creation in this segment is immense.
"India needs to boost domestic manufacturing and attract large investments in the electronics value chain," she said.
On Friday, President Ram Nath Kovind had said India is making rapid strides in electronics production and has emerged as the second largest mobile phone manufacturing hub globally.
The value of electronic equipment manufactured in the country has increased to Rs 4.58 lakh crore in 2018-19, from Rs 1.90 lakh crore in 2014-15.
Over the last few years, the government has been bullish on making India a manufacturing base for the world and has set a target to promote domestic manufacturing in the entire value-chain of ESDM (electronic system design and manufacturing) to achieve a turnover of USD 400 billion (Rs 26 lakh crore) by 2025.
For mobile handset segment alone, the government, under the National Policy on Electronics 2019, had set a target of making 100 crore mobile handsets indigenously by 2025, valued at about Rs 13 lakh crore.
Out of the 100-crore mobile handset manufacturing target, 60 crore units will be for exports valued at about Rs 7 lakh crore.
According to industry body Indian Cellular and Electronics Association (ICEA), mobile handset exports grew over eight-fold to Rs 11,200 crore in 2018-19, and exceeded imports for the first time. PRS SR DRR