As a result of increasing tensions between the US and China, mainly companies have decided to move some part of production out of China. It seems that more and more companies are looking at India as a possible alternative for China.
Ravi Shankar Prasad, Minister of Electronics, and Information Technology, yesterday tweeted “A total of 22 companies have filed their application under the PLI Scheme. These companies will produce mobile phones and components worth Rs 11.5 lakh crore in the coming 5 years out of which products worth Rs 7 lakh crore will be exported.”
The Indian Government’s Production Linked Incentives (PLI) scheme gives firms several incentives to manufacture smartphones and electronics regionally. With the help of the PLI scheme, the Government of India is trying to draw more smartphone manufacturers to start production in India and make India a global smartphone export bub.
Samsung, Apple suppliers like Foxconn, Pegatron, and Wistron and local smartphone manufacturers like Micromax and Lava, are among the 22 companies that have applied for India’s Production-Linked Incentive Scheme (PLI).
Recently, Apple started the manufacturing of its latest iPhone 11 in India, specifically in Apple’s Foxconn and Wistron’s facilities. Moreover, Pegatron is in talks to set up its factories in India.
In the case of Samsung, it already has its world’s biggest plant in India and is looking to make $500 million investment to establish a display manufacturing plant in India.
This is good news for India and its economy as it will help India to become a Global Smartphone Export Hub. For us consumers, it means that we might get to enjoy lower-priced smartphones since the companies don’t have to pay taxes for the products manufactured in India.