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The government has started Production Linked Incentive Schemes (PLI Schemes) to promote manufacturing in the country. This has helped the country to improve on the export front. Even after this, the debate on the success and significance of PLI schemes continues. However, now there is a latest figure, which can silence the critics.
This much will be spent under PLI
According to a news from ET, Rs 42,897 crore has been received in the last three years from 6 percent incremental GST on mobile phones. This is more than the entire provision made for the PLI scheme introduced for the manufacturing of smartphones. The central government had made a provision of about 39 thousand crore rupees for the PLI scheme of smartphone manufacturing.
Earning surplus of central government alone
Industry organization India Cellular and Electronics Association (ICEA) has given this information in a letter sent to the Finance Ministry. In a news report of ET, ICEA has been quoted as saying that even if we look at the earnings of the Central Government only from GST, then in 5 years this PLI scheme is going to get surplus. The amount that the government will earn under this scheme in 5 years will be about 11 thousand crore rupees more than the expenditure incurred on the scheme for the whole five years.
Earning so much from the increased rate of GST
The Central Government had launched the PLI scheme for smartphone manufacturing on 1 April 2020. Along with this, the central government had also increased the rate of GST on mobile phones from 12 percent to 18 percent. According to ICEA, the government has got an additional revenue of Rs 42,897 crore due to this 6 percent increase in GST. At the same time, in these 3 years, the total earning of the government from mobile phone GST has been Rs 1,28,691 crore.
Now it is going to cost so much
The total provision for 5 years under the Government’s PLI scheme is now going to be Rs 38,601 crore. Earlier, the total expenditure under this was going to be Rs 41 thousand crore. iPhone maker Pegatron started a year late, which also reduced the cost under PLI. So far Rs 1,644 crore has been given to smartphone companies under the PLI scheme.
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