The Government of India has approved applications of Samsung and 3 Apple iphone makers — Foxconn Technology Group, Wistron Corp., Pegatron Corp., to manufacture mobile phones in the country over the next five years. They are among the 16 companies that won approval under the Production-Linked Incentive scheme (PLI).
According to the Indian Ministry of Electronics and Information Technology (MeitY) statement, the companies will be producing smartphones and other electronics components worth more than Rs 10.5 lakh crore over the next five years. In return, the government will offer them an incentive of 4% to 6% on additional sales of goods produced locally over five years, with 2019-2020 set as the base year.
“Apple and Samsung together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country,” the ministry said.
“Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of Atmanirbhar Bharat – a self-reliant India,” the ministry added.
Domestic smartphone manufacturers Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics have received the approval for manufacturing. The companies have proposed production output worth Rs 1.25 lakh crore over the next five years, the Ministry of Electronics and Information and Technology (MeitY) said in a statement.
The companies will also generate more than 2 lakh direct employment opportunities in the next five years along with the creation of additional indirect employment of nearly 3 times the direct employment, MeitY said.
“PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat (self-reliant India),” said Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice.
In addition to this, six companies are approved under the Specified Electronic Components Scheme which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
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