Apple vendor eyes production shift to India

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

Leading handset makers like Samsung and iPhone producer Apple's contract manufacturers have submitted proposals to avail benefits under the government's Rs 50,000 crore production linked incentive scheme for boosting electronics manufacturing, sources said.

Notably, Apple with 37 percent and Samsung with 22 percent together hold 60 percent of all global mobile phone sales revenue. Container loads of goods from Apple's key contract manufacturer have already reached India in the wake of the pandemic and China's initial attempt to smother information about its outbreak.

The PLI scheme for large scale electronics manufacturing was notified on April 01 and it was open for filing applications till July 31 (Friday). We have received 22 applications under the scheme.

In light of the enthusiastic response from the industry, the government estimated that over the next five years, it will lead to production of mobiles and components worth Rs 11.5 lakh crore.

"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", Prasad said.

Production-Linked Incentive Scheme is a scheme launched by the IT ministry which would give incentives of 4-6 per cent to electronics companies that manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as microelectromechanical systems in India.

He said PLI scheme has been huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers. "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 bring additional investment in electronics manufacturing to the tune of ₹11,000 crore.

"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. Asked about the Chinese players and whether the firms were barred from applying, Prasad said, "Let me be very clear, this particular scheme is not against any country, it is only India-positive... Now expand your presence in the country", he said.

There was significant interest expressed by local manufacturers as well, with applications being filed by Lava, Dixon, Micromax, Sojo, Optimus and Padget Electronics. Ravi Shankar Prasad, without naming any country, reiterated that these rules on security and investment will need to be complied with.

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