Apple vendors, Samsung, others propose Rs 11 lakh crore mobile phone production under PLI scheme

The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs, a so...

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NEW DELHI: Three key Apple key suppliers Foxconn Hon Hai, Wistron and Pegatron along with Samsung and homegrown phone maker Lava and Dixon are among the 22 applicants for the government of India's mega electronics manufacturing investment scheme called the Production Linked Incentive

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.

He said that the development is “industry positive” and India offers a stable investor-friendly government, a huge domestic market adding that the scheme is not against any country. “We have proper rules and regulations with regard to our security and with bordering countries,” he said.


Prasad said that Apple and Samsung are welcome to India to boost manufacturing. "We welcome Indian companies such as Lava, Micromax, and urge them to transform into champions,” Prasad said.

Out of the total production, foreign companies which have a threshold of Rs. 15,000 have proposed a production of over Rs. 9,00,000 crore, while the domestic companies will contribute to the remaining Rs. 2,00,000 crore worth of production. Companies under the Specified Electronic Components segment have proposed a production of over Rs. 45,000 crore, he said.

Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the domestic companies segment under this scheme.
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Close to 60% of the total production will be contributed by exports and the scheme is expected to bring additional investment in electronics manufacturing to the tune of INR 11,000 crore.

Apple (37%) and Samsung (22%) together account for nearly 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.

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.

Under the Specified Electronic Components Segment, 10 companies have applied which include names such as AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.
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