India has approved 16 companies for incentives under the PLI scheme, as a means to boost domestic smartphone manufacturing.
The list includes iPhone manufacturers Foxconn, Wistron and Pegatron, as well as Samsung, Micromax and Lava.
The approved companies are expected to make Rs 10,50,000 crores worth of smartphones in India under the scheme.
India is going to become a major hub of smartphone manufacturing soon. The government approved incentives under the PLI (Production-linked incentive) scheme to 16 smartphone manufacturing companies including Foxconn, Samsung, Lava, Micromax and more, as a means to boost domestic manufacturing.
Smartphone manufacturing has been a marquee feature under Prime Minister Narendra Modi’s Make In India policy, and the government had announced a $6.65 billion (roughly Rs 48,894 crores) incentive scheme to turn the country into a manufacturing and export hub for smartphones.
Government officials, earlier this year, amended the rules to the PLI scheme to make it more market-friendly by removing caps and other contentious clauses. The incentives range from 4% to 6% over a five-year period, provided the manufacturer makes smartphones valued at around $200. The incentives will be only released if the manufacturer ramps up production level by more than Rs 4,000 crore over and above the production level in the base year.
16 companies approved under the PLI scheme
According to a report by Reuters, 16 companies have received the approval of incentives under the scheme, and have agreed to ramp up production in the country. The list includes iPhone manufacturers Foxconn, Wistron and Pegatron. However, the government did not disclose the investment these companies will make. Sources told Reuters that a total of almost $900 million (roughly Rs 6,614 crores) have been planned by these companies to be invested in India over a five-year period.
Samsung, which owns the world’s largest mobile manufacturing plant in Greater Noida in Uttar Pradesh, also received approval under the scheme. Furthermore, Indian smartphone brands like Lava and Micromax also got approval. According to a statement given to Reuters, the approved companies are expected to make Rs 10,50,000 crores worth of smartphones in India.
Source: Reuters
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