Apple's Taiwan suppliers, Samsung apply for India's local smartphone scheme

Apple's Taiwan suppliers Samsung apply for India's smartphone scheme

Totaling $6.6 billion, the program aims to encourage smartphone and electronics components production in the country. The list of global applicants includes Samsung, Pegatron, Foxconn, Winston and Rising Star.

He added that the government also expects the new incentive scheme to help increase domestic value addition for mobile phones to 35-40% by 2025 from the current level of 20-25%.

Apple (37%) and Samsung (22%) together account for almost 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country, the ministry of electronics and IT said in a statement. "I personally thank all the companies that have applied", Prasad told reporters.

CNBC-TV18 was the first to report on participation by Samsung and Apple's second largest contract manufacturer, Pegatron's application under the PLI scheme. There is no price limit for Indian companies under the scheme.

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.

Prasad also said that Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment.

The minister further said these companies will make thousands of crores investments based on the approval of their proposal. "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".

Prasad made the remarks while addressing the media to explain the Centre's PLI scheme, adding that initiatives such as Digital India and Make in India have been "transformative programmes". "Besides this, we have received commitments to make mobile phone and parts worth Rs 11.5 lakh crore", Prasad said.

On the absence of the Chinese firms, IT minister maintained that the rules with respect to investment and security were clearly defined for countries neighbouring India. The fresh proposals have exceeded the government's manufacturing revenue target but the final outcome will depend on the decision of the screening committee that will select projects eligible for incentives.



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