Sunil Vachani, the founder of Dixon Technologies, has urged for a renewed focus on the production-linked incentive (PLI) scheme for the mobile manufacturing sector and the introduction of a fresh PLI dedicated to electronic components.
In an interview with CNBC-TV18's Shereen Bhan, he highlighted the shortcomings of the existing PLI for components, stating, "The investment to incentive ratio was probably the lowest. We definitely need another PLI scheme, which will spur investments in the component sector."
Dixon Technologies is actively collaborating with the government to ensure the success of the proposed PLI scheme. Vachani expressed optimism, drawing a comparison with the successful PLI for mobile phones, which he deemed a success, having created almost five lakh new jobs and led to an incremental production of almost 80,000 crores.
"I would say it's definitely in the right direction. We need one more probably round of PLI as far as mobile phones are concerned and a new PLI for electronic components." he asserted.
Vachani addressed concerns about the feasibility of replicating the mega factory model in India, stating, "If you do a comparison today, between China and India, in terms of labor cost, right, we are much lower. We are achieving as much productivity as some of these Chinese factories are doing and maybe sometimes better."
"What we are lacking as a country is, of course, the infrastructure," he further said highlighting the challenges. "So that means we lose out on the logistics cost. And I think what we mutually lack is the supply chain. So we tend to import a lot of components."
Vachani expressed confidence that with improvements in infrastructure and an increase in value addition, India can compete with the best in the world. He echoed the sentiments of Prime Minister Modi, saying, "As our honorable Prime Minister said, this is our time, and we should be able to compete with the best in the world."
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