Worlds leading tech giants, Samsung & US-based Apple’s manufacturing partners Foxconn, Wistron and Pegatron, including Indian smartphone vendors Micromax, Lava, and others have applied for India’s $6.6 billion production-linked incentive (PLI) program that aims to make the country a smartphone manufacturing hub, just like China.
Actually, the ‘Atmanirbhar Bharat’ (Self-Reliant India) scheme now seems to be accelerating very fast than expected. The one of the main reasons behind this acceleration may be the global anti-China sentiment, which is continually rising.
This makes a path for India to merge as a new economic powerhouse and the world’s fastest-growing smartphone & internet market, which is already becoming a hotspot for consumer electronics manufacturing.
India’s IT Minister Ravi Shankar Prasad said in a press conference that the Production-Linked Incentive Scheme will offer a range of incentives to companies including a 6% financial incentive on additional sales of goods produced locally over five years, with 2019-2020 set as the base year.
A total of 22 companies have filed their application under the PLI Scheme. These companies will produce mobile phones and components worth Rs 11.5 lakh crore in the coming 5 years out of which products worth Rs 7 lakh crore will be exported. pic.twitter.com/3yUky3HkOC
— Ravi Shankar Prasad (@rsprasad) August 1, 2020
22 companies have applied for the incentive program, which also includes manufacturing of electronics components — and have agreed to export 60% of their locally produced units outside of India, he added. The companies estimate they will produce smartphones and components worth $153 billion during the five-year duration, Mr. Prasad said in the same press conference.
Notably, a few days before this development, Apple has already announced the starting of assembling its iPhone 11 in India, which is handled by Foxconn and Wistron’s local unit in two southern Indian states.
Also, there is a lot more in the same bucket, was said this because some reports claimed that Foxconn is planning to invest up to $1 billion to expand a factory in Tamil Nadu state where it already assembles iPhones. Apple’s contract manufacturing partner, Taiwan-based Wistron, first began assembling older iPhone models in 2017.
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” Minister further said. The deadline for applying to participate in India’s program, which began in April, ended on Friday this week.