India aims to become the next global smartphone exporter after China with its recently announced Production-Linked Incentive (PLI) scheme. Major electronic companies, such as Apple and Samsung, have taken interest in the scheme. Apple and Samsung’s manufacturers have both applied for the incentives. Investors seem to have grown in interest in India’s growth prospects in the future.
The Production-linked incentive (PLI) attracts investors
As the name implies, the production-linked incentive (PLI) is a plan that offers companies cash incentives. The scheme allows a 4% to 6% extension of incentive over incremental sales of locally manufactured devices. Eligible companies may receive the said incentives for a long period of five years subsequent to the base year defined. This plan is in line with Prime Minister Narendra Modi’s target in providing more employment by emphasizing in local manufacturing. The plan is expected to boost India as the next global smartphone exporter, exceeding China.
Who are up for the plan?
Reuters revealed Apple’s contract manufacturer, Foxconn, Wistron Corp, and Pegatron corps have applied for the plan. While two of them, Foxconn and Wistron Corp, already owns plants in two different Southern Indian states, Pegatron still hasn’t spilled anything in regards to the future plan. Foxconn later told Reuters over their plan on investing up to $1 billion in its Tamil Nadu’s factory expansion.
Similarly, Samsung Electronics Co Ltd is up for the competition too. Reuters mentions Samsung currently owns a plant somewhere in New Delhi, boasted as “the world’s biggest mobile phone manufacturing plant”. The factory also reportedly exports devices.
Reuters reports 22 firms have applied for the plan. The government expects around $154 billion worth smartphone production and 300,000 direct jobs available in the next five years.
How India plans to come forward to become the next smartphone exporter
India, as one of the most populated countries in the world, also bears the same (result, achievement) for the number of wireless subscribers. Moreover, two of the third are smartphone users. Not to mention labors offered by India are considerably cheap.
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