iPhone makers, Samsung, Lava, 19 others apply to govt for production incentives1 min read . Updated: 01 Aug 2020, 03:19 PM IST
- The Centre's production-linked incentive scheme has received 22 applications from top global and domestic mobile phone makers such as Samsung, Foxconn, Lava, Micromax
- The scheme offers 4-6% incentive on incremental sales of goods from target segments that are made in India for five years
NEW DELHI: The Union government has received 22 applications from top global and domestic mobile phone makers such as Samsung, Pegatron, Wistron, Foxconn, Rising Star, Lava, Micromax, among others, under its production-linked incentive (PLI) scheme. The scheme aims to boost local production and make India a global hub of electronic manufacturing, information technology, electronics and telecom minister Ravi Shankar Prasad said on Saturday.
Out of the 22 companies, Foxconn, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple and Samsung, together account for nearly 60% of global sales revenue of mobile phones. The PLI scheme is expected to increase their manufacturing base manifold in the country. “Apple, Samsung, we welcome you to India," Prasad said.
Domestic manufacturers, such as Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied under the scheme. As many as 40 companies have filed applications under the mobile components segment, which includes AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync, an official statement said.
“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" Prasad said in a briefing.
The PLI scheme offers 4% to 6% incentive on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years. The base year over here is 2019-20. The incentives are applicable from August 1. Over the next five years, the scheme is expected to lead to total production of worth ₹11.5 trillion, and create three lakh direct jobs.
"Out of the total production, companies under mobile phone (invoice value ₹15,000 and above) segment have proposed a production of over ₹9,00,000 crore. The companies under mobile phone (domestic companies) segment have proposed a production of about ₹2,00,000 crore and those under specified electronic components segment have proposed a production of over ₹45,000 crore," the ministry of electronics and IT said in a release.