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

Apple Suppliers Samsung Apply for Government’s PLI Scheme

Companies under the Specified Electronic Components segment have proposed a production of over Rs. 45,000 crore, he said. Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

The investment proposals are expected to total upto Rs. 11,50,000 crore of total production in the next five years with employment potential of three lakh direct employment and nine lakh indirect employment said, union minister for electronics and IT, Ravi Shankar Prasad on Saturday.

Samsung, Apple suppliers Foxconn, Wistron and Pegatron, and local smartphone makers Micromax and Lava are among the companies that have applied for India's Production-Linked Incentive Scheme (PLI). There is no price limit for Indian companies under the scheme.

The worldwide cellphone manufacturing companies that have applied under the scheme are Samsung, Rising Star and three Apple contract manufacturers - Foxconn Hon Hai, Wistron and Pegatron. "I personally thank all the companies that have applied", Prasad told reporters.

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.

Almost two dozen Indian and global companies in the cellphone segment have applied for the scheme, which is expected to generate 300,000 direct jobs in the country, Prasad said. There were no applications from Chinese companies under the scheme.

"Applications received under the PLI scheme with cumulative investment commitments worth Rs 11,000 crore, total production of mobile phones at Rs 11.50 lakh crore with 60 per cent production reserved for exports, generation of 3 lakh direct jobs...considered to be an extraordinary feat for the government's commitments towards Make in India and Aatmanirbhar Bharat objectives", ICEA Chairman Pankaj Mohindroo said in a statement.

Prasad also claimed that the scheme is India positive but not against any country. The minister said India is not averse to investment from any country but companies will have to follow rules related to security clearance, etc. "The benchmark for global companies was to manufacture mobile phones of worth Rs 15,000 or more".

Officials also said that 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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