Top Chinese players give it a miss; PLI scheme to create 3L direct jobs in 5 years
Apple’s second-largest contract manufacturer, Pegatron, and South Korean giant Samsung as well as 20 companies have applied for the Modi Government’s Production-Linked Incentive (PLI) scheme and have committed huge investment. However, top Chinese players such as Oppo and Vivo have not applied for the PLI scheme.
The scheme is aimed at turning India as a smartphone export hub that could ultimately take on China and other east Asia’s electronics hubs.
The PLI scheme launched on Saturday is expected to promote exports significantly around 60 per cent of the production. By this PLI scheme, in five years the expectation of total production is above `11.5 lakh crores in five years including the export of `7 lakh crores, said Ravi Shankar Prasad, Minister for Electronics and Information Technology.
He also said that PLI scheme will generate approximately 3 lakh direct employment opportunities in next 5 years along with creation of additional indirect employment of nearly three times the direct employment.
“PLI scheme to herald a new era in mobile phone and electronic components manufacturing. Production of `11.50 lakh crore and out of the total production we are aiming 60 per cent of it for exports in next five years. This is major boost to Prime Minister Narendra Modi’s Make in India and Atmanirbhar Bharat. 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,” said Prasad.
The Minister said that many applications are received as well as from global companies for manufacturing mobile phones and electronic components in India under the PLI Scheme. “A total of 22 companies have filed their application under the PLI Scheme. The international mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value INR 15,000 and above) Segment are Samsung, Foxcon Hon Hai, Rising Star, Wistron and Pegatron. Out of these, 3 companies namely Foxcon Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. 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,” said Electronics Ministry in a statement.
“Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied under the scheme. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production. Ten companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync,” added the statement.