India says Apple, 21 firms pledge $1.5 billion investment

Remigio Civitarese
Agosto 2, 2020

Apple Inc's Taiwan contract manufacturers Foxconn, Wistron Corp and Pegatron Corp have applied for India's US$6.65 billion scheme to boost local smartphone manufacturing, the country's tech minister said on Saturday.

Apple and Samsung account for almost 60 per cent of global sales revenue of mobile phones.

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.

The government had notified three schemes on April 1 for the promotion of electronics. The incentives are applicable under the scheme from August 01 (Saturday).

According to the Indian government, Apple's manufacturing partners will be taking part in the scheme, as well as Samsung and other local mobile device vendors.

Over the next five years, the scheme is expected to lead to total production worth around Rs 11.5 lakh crore.

India has been planning the PLI scheme for some time, with a goal to tempt large-scale manufacturers to increase their production of smartphones in the country.

The ministry also revealed that over 40 applications were also received for the Electronics Manufacturing Clusters (EMC) scheme aimed at boosting manufacturing of electronics components.

"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", Prasad added.

Industry has reposed its faith in India's stellar progress as a world class manufacturing destination and this resonates strongly with Prime Minister's clarion call of AtmaNirbhar Bharat - a self-reliant India, the Minister said.

"In the next five years, mobile phones worth about Rs 9 trillion in the category of above Rs 15,000 per unit are expected to be produced as per the proposals submitted by the companies".

The scheme will bring additional investment in electronics manufacturing to the tune of ₹11,000 crore. Indian companies including Dixon Technologies and Optiemus Electronics have also applied to take advantage of the incentive program.

Ten companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.

Highlighting the benefits of the scheme Prasad said, "These companies will create 3 lakh direct while close to 9 lakh indirect jobs".

"The move is not against any country but is India positive", Prasad said.

The scheme is expected to promote exports significantly. 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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