Apple, Foxconn, Samsung Will Make & Export Phones Worth $100 Billion From India!
A government committee has approved over $100-billion mobile export proposals from Apple’s largest iPhone assembler Foxconn, Pegatron and Wistron as well as Samsung, Karbonn, Lava and Dixon, another ardent step to boost Atmanirbhar Bharat Abhiyan mission.
New Scheme To Boost Electronic Manufacturing
According to a senior government official, “The empowered committee has approved all applications estimated to export around $100 billion (Rs 7.3 lakh crore) worth mobile phones under the production linked incentive scheme (PLI) and all the applications will be placed before the cabinet probably this week,”.
Under the Centre’s new scheme to boost electronics manufacturing, the Apple’s contract manufacturers, as well as large global tech giants such as Samsung and local handset makers Lava and Dixon had shown their interest in manufacturing mobile devices and components of over Rs 11 lakh crore in the next five years.
led by Amitabh Kant, CEO of Niti Aayog, the empowered group also includes other member secretaries of economic affairs, revenue, expenditure, the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT) and Directorate General of Foreign Trade (DGFT).
Out of all the applicants, five are overseas while seven are Indian and another six are in the components manufacturing scheme, as per the reports.
How Does This Help?
The development is expected to boost exports and generate more employment opportunities in the future.
It is also worth mentioning here about the Centre’s Production Link Incentives (PLI), which is to create 12 lakh employment opportunities, 3 lakh direct and around 9 lakh indirect jobs.
According to the applications, Apple’s contract manufacturers and Samsung have submitted production estimates of phones worth $50 billion each in the next five years.
While exports will be slightly lower in each case.
“The extraordinary response to the PLI shows the enormous trust of the global community in India’s manufacturing capability and leadership of Prime Minister Narendra Modi,” said the Communications and IT Minister Ravi Shankar Prasad.
Amidst the sustained tension between Washington and Beijing over trade, the Centre has launched the PLI scheme to aid many companies considering diversifying their supply chains away from China.
iPhone maker Apple’s contract manufacturers, Foxconn and Wistron have manufacturing units in India currently.
In addition to that, Apple’s second-largest contract assembler, Pegatron is also considering to set up its unit and under discussions to different states like Karnataka, Uttar Pradesh, Tamil Nadu and Andhra Pradesh.
At present, Samsung, exports phones worth about $2.5 billion from India, is planning to ramp up its production to handsets worth $50 billion in the next five years.
Out of this, over $40 billion will comprise the devices having a factory price of more than $200.