The Indian Government’s plans to boost local manufacturing under the banner “Make in India” is finally showing its worth. Earlier, the companies have been just repackaging or assembling smartphones in the Indian market. But in a recent development, major tech giants have invested hugely to set up proper manufacturing plants in India, thanks to the incentives offered by the Indian Government under the PLI (Production Linked Incentive) scheme for large scale electronics manufacturing in the country.
As per the reports, 16 companies had filled applications, out of which ten have already been approved in the smartphone manufacturing segment. The companies approved under the PLI scheme include Samsung, Foxconn Hon Hai, Rising Star, Wistron, and Pegatron. Out of these, Foxconn Hon Hai, Wistron, and Pegatron are contract manufacturers for Apple. Moreover, Foxconn and Wistron have already set up their respective plants in Chennai and Bengaluru in India. Other companies that have been approved under the mobile segment include Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics.
The PLI (Production Linked Incentive) scheme was notified by the Government of India in April 2020 to attract international companies in setting up their manufacturing plants in India, with an incentive of 4% to 6% on incremental sales of goods under target segments which are manufactured in India. The companies approved for the scheme will receive the incentive for a period of 5 years subsequent to the base year (FY20).
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” said Ravi Shankar Prasad, Minister of Electronics and Information Technology.
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