Govt Rolls Out Rs 50,000 Cr Package For Local Mobile Manufacturing; Aims $133 Bn Of Production!
In one of the biggest push for encouraging local manufacturing of phones in India, Govt has announced a package of Rs 50,000 crore for mobile manufacturers.
This will encourage more and more mobile makers to set up production in India, and help domestic production of phones.
Indian Govt aims to manufacture $133 billion of phones in India, by 2025.
Rs 50,000 Cr Push For Local Manufacturing Of Phones
In order to inspire and encourage more and more mobile manufacturing firms to set up their factories in India, Govt of India has announced Rs 50,000 crore incentives plan, which is being hailed as one of the biggest in India.
This will not only benefit foreign mobile brands like Apple, Samsung, Xiaomi, Oppo, OnePlus and others, but also give boost to Indian mobile brands such as Lava, Micromax and Intenx to kickstart their own factories, and help India become self-reliant.
Taiwanese firms Foxconn and Wistron, which manufacture gadgets for Apple and other brands will also get benefitted.
How Will This Corpus Of Rs 50,000 Crore Work?
Govt has basically set up production-linked schemes for mobile manufacturers.
The more mobiles they manufacture in India, the more incentives and bonuses they will get.
5 major foreign-based mobile brands, and 5 Indian mobile brands will be selected and promoted under this scheme.
While the eligibility criteria of foreign mobile brands is Rs 10,000 crore of revenues in 2019-20 which produce handsets which are sold for Rs 15,000 and more, it’s Rs 100 crore revenues for Indian firms, with no cap on the price of the handset sold.
Around 25% subsidy can be provided for setting up an electronics manufacturing factory, and more incentives will be provided for manufacturing components required for mobiles such as semi-conductors, RAMs, and more.
Overall, Govt aims to produce $133 billion of smartphones in India, by 2025.
We will keep you updated as more details come in.