Apple assembly partners to take part in India's $6.6B PLI scheme

Apple Suppliers Samsung Apply for Government’s PLI Scheme

South Korean giant Samsung, Apple's contract manufacturing partners Foxconn, Wistron and Pegatron, and Indian smartphone vendors Micromax and Lava among others have applied for India's $6.6 billion incentive program aimed at boosting the local smartphone manufacturing, New Delhi said on Saturday.

Samsung runs what it calls the world's biggest mobile phone manufacturing plant on the outskirts of the Indian capital, New Delhi. Out of these, five global players- Samsung, Foxconn - through two units, Wistron and Pegatron and five domestic players- Lava, Dixon, Micromax, Padget Electronics, Sojo and Optiemus will be aided by the government to develop their manufacturing ecosystem in India.

The government had notified three schemes on April 1 for the promotion of electronics. We have received 22 applications under the scheme.

This will lead to production worth Rs. 11.50 lakh crore in five years of which 60% will be exported, creating some 3 lakh direct employment and three times indirect employment, the government said in a statement.

Union IT Minister Ravi Shankar Prasad on Saturday (August 1) said that the Production-Linked Incentive Scheme (PLI) launched by the government will create 3 lakh direct while close to 9 lakh indirect jobs.

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.


"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", he said.

Addressing a press conference Prasad said, " Under the Production-Linked Incentive Scheme, around 22 companies have applied. Around 10 companies have filed applications under the specified electronic components segment, which include include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync. "These companies will produce mobile phone & components in India worth Rs 11.5 lakh crores in the coming 5 yrs out of which products worth Rs 7 lakh crores will be exported".

"The scheme will generate around three lakh direct employment opportunities in next five years along with creation of additional indirect employment of almost three times the direct employment", Prasad said.

Domestic value addition is expected to grow from the current 15-20 per cent to 35-40 per cent in case of mobile phones and 45-50 per cent for electronic components, he further said.

"The move is not against any country but is India positive", Prasad said. "Now expand your presence in the country", he said. "But, there are some norms, for investments also in this country, with security norms and they have to comply with that".

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