Govt weighs PLI in wearables; move may boost localization
New Delhi/ Mumbai: The Union government is weighing the introduction of a production-linked incentive (PLI) scheme for wearables, including hearing devices, to boost local production by both Indian and global companies. “We’re exploring whether there’s a need for it. It’s the fastest-growing category (for consumer goods).
The Indian brands are doing very well,including designing and manufacturing, and they are quite competitive," a senior official in electronics and information technology ministry said seeking anonymity. PLI schemes seek to encourage local production through incentives. Companies can supply locally produced goods to domestic and export markets.
Several electronics manufacturing and services companies export smartphones and other electronic devices. The government was evaluating the requirement of a scheme for wearables after PLIs were introduced for 14 sectors, starting with mobile phones in 2020, which led to soaring exports from leading manufacturers like Apple and Samsung. Other brands have also raised their local production capacities and value addition for goods made in India.
While plans for hearables and wearables may be in the early stages, industry stakeholders said the move could boost localization for Indian brands, which account for 75% of the overall wearable and audio products segment in India. Right now, around 55% of all products for the category are made in India, and this is expected to reach 90% in the next three years, industry executives said. Counterpoint Research estimates suggest that wearables and audio products could be an $11 billion industry in India by 2028, and a PLI scheme will help create a robust supply chain, besides easing pressure on the already-tight margins of
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