Govt Welcomes Apple, Samsung's Local Manufacturing Move, Chinese OEMs Skip PLI Offer

Govt Welcomes Apple, Samsung's Local Manufacturing Move, Chinese OEMs Skip PLI Offer

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.

The government estimates that the global and Indian companies, which have applied under the PLI scheme will produce goods worth Rs 11.5 lakh crore over the next five years, of which almost 60 per cent or goods worth Rs 7 lakh crore will be exported.

"PLI Scheme to herald a new era in mobile phone and electronic components manufacturing".

Apple and Samsung are both hoping to produce more smartphones in India under the government's PLI scheme.

Among the domestic companies, Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied.

Talking about the progress in the scheme Prasad said that Government's PLI Scheme to boost mobile and electronics manufacturing in India has received good interest from domestic and foreign companies.

Under the scheme, to avail the graded incentives ranging between 4% and 6% over a five-year period, manufacturers will have to produce high-end phones (with freight on board value of more than $200) of more than Rs 4,000 crore over and above their production level in the country in the base year.

Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

There is no price limit for Indian companies under the scheme.

In terms of revenue, Apple accounts for 37 per cent and Samsung 22 per cent for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the Ministry of Electronics and IT (Meity) said. Production of Rs. 11.50 lakh crore and out of the total production we are aiming 60 percent of it for exports in the next five years. None of the Chinese companies such as Oppo, Vivo, Realme and OnePlus have applied for benefits under the PLI scheme.

The global firms have proposed production to the tune of Rs 9 lakh crore in the next five years. "The benchmark for global companies was to manufacture mobile phones of worth Rs 15,000 or more". The firms under specified electronic components segment have proposed a production of over Rs 45,000 crore.

Samsung has a plant on the outskirts of New Delhi that it describes as the world's biggest mobile phone manufacturing plant.

When asked about Chinese companies participating or any restrictions on them, Prasad said, "As an IT Minister I am not supposed to comment upon the individual business decision from any country.there are norms by the government of India and we are very clear on them and those norms have to be complied".

The companies signing up to take part have also agreed to offer direct and indirect employment opportunities to a total of 1.2 million Indians.

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