Apple and Samsung both thinking or say planning about producing more smartphones in India as part of the government’s Production Linked Incentives (PLI) scheme.
According to a report, Apple suppliers Foxconn, Wistron and Pegatraon have all applied for a $6.65 billion program to increase production in India.
In the meantime, Samsung has also applied for PLIs in India.
The scheme, known as a Production Linked Incentives system, offers companies a range of incentives, including a 6% financial incentive for the additional sale of locally produced goods over a five-year period, with Indian IT Minister Ravi Shankar 2019-2020 Prasad said as the base year in a press conference.
22 companies applied for the incentive program – which includes the manufacture of electronic components – and agreed to export 60% of their locally manufactured units outside of India, said Prasad.
He said the companies estimate that they will produce smartphones and components worth $153 billion over the five-year term.
The production-linked incentive system is intended to make India a global center for the production of high-quality smartphones and support Prime Minister Narendra Modi’s urge to make the country independent, Prasad said.
Incidentally, Samsung has already set up the world’s largest smartphone production unit in India.
Samsung manufactures many of its smartphones here and even exports some of them to other countries. $ 500 million was recently invested in building a display manufacturing facility in the country.
India is already incentivizing companies for cheap labor, and companies have recently started to relocate their production units to a certain extent from China to reduce their dependency on land.
With PLIs, India can improve this situation in its favor and entice large smartphone manufacturers to set up factories in the country.
As part of their applications, the companies have also agreed to offer around 1.2 million Indians direct and indirect employment, the Indian minister said.
The interest of Samsung and Apple, two companies that make up more than 50% of global smartphone sales, in India is evidence of the opportunities they see in the second largest Internet market in the world, Prasad said. “Apple and Samsung, India, greet you with attractive policies. Now expand your presence in the country, ”he said.