Apple's Taiwan suppliers, Samsung apply for India's smartphone scheme

Apple’s partners and Samsung apply for India’s $6.6 billion local smartphone production program

PLI scheme: Welcome to India, says government to Apple and Samsung; Chinese firms give it a miss

The three contract manufacturers of U.S. major Apple - Foxconn Hon Hai, Wistron and Pegatron - as well as South Korean major Samsung have applied under the scheme, which aims to make the country a hub for mobile manufacturing aimed at export market.

Samsung runs what it calls the world's biggest mobile phone manufacturing plant on the outskirts of the Indian capital, New Delhi.

The global mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value ₹15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.

The government had notified three schemes on April 1 for the promotion of electronics.

According to industry estimates, mobile manufacturing companies have the potential to get an incentive of around Rs 7,500 crore if they scale up production to about Rs 1.5 lakh crore over the next five years under the PLI scheme.

Production-Linked Incentive Scheme is a scheme launched by the IT ministry which would give incentives of 4-6 per cent to electronics companies that manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as microelectromechanical systems in India.

The ministry of electronics and information technology (Meity) has received applications from 22 worldwide and domestic firms under the Rs 41,000-crore production linked incentive (PLI) scheme.

This will lead to production worth Rs. 11.50 lakh crore in five years of which 60% will be exported, creating some 3 lakh direct employment and three times indirect employment, the government said in a statement.

"We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country", he said.

He further enumerated that of the Rs 11.5 lakh crore, Rs 7 lakh crore worth of mobiles and components will be exported.

The scheme will bring additional investment in electronics manufacturing to the tune of ₹11,000 crore.

Meanwhile, around 8-10 companies have filed applications for component manufacturing which include motherboard maker AT&S, Ascent Circuits, Sahasra and Vitesco. "Mobile phones worth about Rs 2 trillion are expected to be produced in the sub-Rs 15,000 category", the source said.

"The scheme will generate around three lakh direct employment opportunities in next five years along with creation of additional indirect employment of almost three times the direct employment", Prasad said.

On the absence of the Chinese firms, IT minister maintained that the rules with respect to investment and security were clearly defined for countries neighbouring India.

The scheme is expected to promote exports significantly.

Having said that he also added, "Those who have applied, they are welcome, but I am not naming any country".

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