Samsung, 3 Apple Partners Among 16 Companies Selected By Govt To Boost Mobile Manufacturing In India

by Darshit Singh 3 years ago Views 10261

Samsung, 3 Apple Partners Among 16 Companies Selec
Samsung, three manufacturing partners of Apple namely Foxconn, Wistron, and Pegatron, are among the 16 companies to get selected by the Indian government under the Production Linked Incentive Scheme (PLI) to boost mobile phone manufacturing in India over the next five years. 

These companies will be producing smartphones and other electronics parts worth more than over Rs 10.5 lakh crore in the next five years. The foreign and domestic companies will get an incentive of 4% to 6% on additional sales of goods produced in India over five years, taking 2019–2020 as the base year, the Indian Ministry of Electronics and Information Technology (MeitY) said in a statement. 

Amid growing tussle with China, India aims to surpass the dragon as the manufacturing hub of the world. Nearly 60% of the products produced in India will be exported, the ministry said. The companies will generate more than 2 lakh direct employment opportunities in the next five years along with 6 lakh indirect employment opportunities, the ministry said. 

Including 3 major contracting firms of Apple in the PLI scheme is said to be a big move as Apple looks to ramp up its manufacturing abilities in India. “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,” said Union Minister Ravi Shankar Prasad.

These companies will bring additional investment in electronics manufacturing to the tune of Rs 11,000 crore, the ministry added. Domestic companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics have also been approved by MeitY.

Chinese smartphone makers Oppo, Vivo, OnePlus, and Realme, who recently faced flak from the Indian public after India-China skirmishes along the LAC, and command about 80% of the Indian market were missing from the list as they didn’t apply. 

The Indian govt's incentive boost comes at a time when India registered the worst smartphone sales decline (-46%) among the top five countries in the world in the second quarter of 2020 owing to harsh lockdowns and heavily restricted movements to curb the spread of coronavirus.

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