“The chartered committee has approved all applications that are estimated to export around $ 100 billion (Rs 7.3 lakh crore) worth of mobile phones under the Production Linked Incentives (PLI) scheme and all applications will be submitted to the cabinet probably this week, “a senior government told ET.
The members of the authorized committee include the CEO of Niti Aayog together with the secretaries of economic affairs, expenses, income, the Ministry of Electronics and Information Technology (MeitY), the Department of Promotion of Industry and Domestic Trade (DPIIT) and the General Directorate of Foreign Trade. (DGFT). Five of the applicants are foreigners, seven are Indian and another six are on the component manufacturing scheme, authorities said.
Contract makers Apple and Samsung have submitted phone production estimates worth $ 50 billion each over the next five years, according to the apps, people with knowledge of the matter said. Exports will be slightly lower in each case.
The scheme was notified in April
“The extraordinary response to the PLI shows tremendous confidence from the global community in India’s manufacturing capabilities and the leadership of Prime Minister Narendra Modi,” Communications and IT Minister Ravi Shankar Prasad told ET.
The PLI scheme, which aims to make India a smartphone manufacturing hub, was notified in April. Apple’s contract manufacturers began producing its latest phone models, the iPhone 11 and iPhone SE, soon after in India. The scheme aims to attract manufacturers looking to exit China amid trade tensions between China and the United States, and even seeks to attract companies from manufacturing centers such as Vietnam. While Foxconn and Wistron already have plants operating in India, Pegatron, Apple’s second-largest contract manufacturer, is looking to establish its factory and is in talks with states such as Uttar Pradesh, Tamil Nadu, Karnataka and Andhra Pradesh.
Meanwhile, Samsung, which now exports about $ 2.5 billion worth of phones from India, is poised to increase its production to $ 50 billion worth of phones in the next five years. Of this, $ 40 billion will comprise devices with a factory price of more than $ 200.
“Samsung exports $ 2.5 billion out of India – of this, 97% was in the under $ 200 segment. By putting this minimum price of $ 200 for eligibility in the PLI scheme, we have incentivized them to make phones. of high value in the country and now they will vacate this space of less than Rs 15,000 factory price for the Indian players to occupy, “said the first official quoted above.” This is an important stage as it will ensure that the Indian players can climb the learning curve and start making world-class smartphones to compete globally. ”
The five global applicants are Samsung, two Foxconn units, Wistron and Pegatron. The domestic ones are Lava, Dixon, Micromax, Padget Electronics, Sojo, Karbonn and Optiemus. According to government data, 22 companies had applied for the PLI plan of 41 billion rupees.
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