Apple vendors, Samsung & others propose Rs 11.5 lakh crore mobile production under PLI scheme

In a big push to Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat’ pitch, Apple’s contract manufacturers along with firms like Samsung, Lava and Dixon have proposed to produce mobile phones and components of over Rs 11.5 lakh crore in the next five years under Centre’s Production Linked Incentive (PLI) scheme. The scheme is aimed at boosting electronics manufacturing.

Union Electronics and IT minister Ravi Shankar Prasad said, “Under the Production-Linked Incentive Scheme, around 22 companies have applied. These companies will produce mobile phones and components in India worth Rs 11.5 lakh crores in the coming five years, out of which products worth Rs 7 lakh crores will be exported.” He said that these companies will create three lakh direct and around nine lakh indirect jobs.

Reiterating that the scheme is only ‘India positive’, Prasad said, “I do not wish to take the name of any country. We have got proper rules and regulations with regard to our security, bordering countries, all those compliances are important. 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 that PLI Scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers.

The PLI Scheme, which extends an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies for a period of five years subsequent to the base year, for large-scale electronics manufacturing was notified on April 1, 2020.

According to a statement, the international mobile phone manufacturing companies that have applied under mobile phone (invoice value Rs 15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron. Out of these, three companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

ALSO READ: SSR Death Case Live Updates: Sushant’s sister writes to PM Modi demanding justice for Sushant

“Over the next five years, the scheme is expected to lead to total production of about Rs 11.5 lakh crore. Out of the total production, companies under mobile phone (invoice value Rs 15,000 and above) segment have proposed a production of over Rs 9 lakh crore, the companies under mobile phone (domestic companies) segment have proposed a production of about Rs 2 lakh crore and those under specified electronic components segment have proposed a production of over Rs 45,000 crore,” Electronics and IT ministry said in a statement.

The Union Minister also expressed confidence that PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to ‘AtmaNirbhar Bharat’.

“Under the leadership Prime Minister Narendra Modi and his visionary initiatives like the ‘Digital India’ and ‘Make in India’ programmes, India has witnessed unprecedented growth in electronics manufacturing in the last five years,” the statement said.

“The National Policy on Electronics 2019 envisions positioning India as a global hub for Electronics System Design and Manufacturing (ESDM) by focusing on size and scale, promoting exports and enhancing domestic value addition by creating an enabling environment for the industry to compete globally,” it added.

On April 1, Centre government had notified three schemes offering cumulative incentives of around Rs 50,000 crore over next five years for electronics promotion. The schemes were aimed at manufacturing of electronic components and semiconductors, modified electronics manufacturing clusters scheme besides PLI scheme for large scale electronics manufacturing.

(With ANI inputs)

Click here for Latest News updates and viral videos on our AI-powered smart news

For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram




Please enter your comment!
Please enter your name here