New Delhi, March 21 (Xinhua) -- India's mobile manufacturing industry on Saturday welcomed the new "Production-linked Incentive (PLI)" scheme which is believed to spur mobile manufacturing in India at a global scale.

The new Scheme would replace the earlier "Merchandise Export from India Scheme (MEIS)."

The Union Cabinet on Friday approved the new Scheme for large scale electronics manufacturing. It proposed 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.

The Scheme would extend an incentive of 4-6 percent on incremental sales of goods manufactured in India, and covered under target segments to eligible companies for a period of five years.

Currently, at 4 billion U.S. dollars India constitutes merely 1.5 percent of global mobile exports. The PLI has the potential of making India one of the countries that could serve the over 200 countries' demand worldwide.

"This new policy advances Prime Minister Narendra Modi's vision expressed in the National Policy for Electronics (NPE) to make India a global hub for mobile and component manufacturing. It is a mid-term stimulus to correct mobile manufacturing disabilities that India suffers from compared to other mobile manufacturing hubs, and help India build global capacities," said the India Cellular & Electronics Association (ICEA) in a statement on Saturday.

The NPE envisions India to reach a mobile phone production of 190 billion U.S. dollars by 2025, of which 110 billion U.S. dollars would be exported.

"Once every decade, the government announces a policy that can be a game-changer - taking the sector to the next level. PLI is exactly that. Its visionary, scalable and global in its outlook" said ICEA Chairman Pankaj Mohindroo. Enditem

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