In the latest set of developments in make in India initiative, assembly partners of electronic sector giants like Apple Inc. and Samsung Electronics Co. have shown interest in investing in India. The companies had been looking to diversify their supply chains and move them beyond Chinese borders ever since the outbreak of the virus and the induced trade war. The trade tensions had brought into focus the risks to the supply chains. Keeping in mind the current global scenario the Indian government has been putting up incentives to attract these companies.
Looks like their efforts are finally going to pay off as 24 companies – inclusive of above mentioned – have reportedly pledged to invest up to $ 1.5 billion in India. Furthermore, they also plan on moving their manufacturing lines and establish mobile phone factories in the South Asian country.
Ravi Shankar, the ministers for electronic and information technology had said in a press conference: “Foxconn Technology Group, Wistron Corp. and Pegatron Corp., all iPhone assemblers, are among companies picked to make smartphones under a production-linked incentive plan”.
This move is expected to boost in the coming five years the value of mobile phone output to Rs. 11.5 trillion.
The companies had been looking to diversify their supply chains and move them beyond Chinese borders ever since the outbreak of the virus and the induced trade war. The trade tensions had brought into focus the risks to the supply chains.
The Modi government introduced a Production Related Incentive (PLI) scheme in the month of March this year to boost the manufacturing of electronic products on a large scale and also attract investment in the manufacture of cell phones. The scheme offers a financial incentive of 4% to 6% on the additional sales of goods that are made within the country for a duration of five years. Also, the scheme lays that with regards to the production of electronic components and other parts, an incentive of 25% on capital expenditure will be given.
Apart from boosting the manufacturing and investments, this plan also expects to generate both direct and indirect jobs in the coming five years. These incentives and the scheme comes as a part of PM’s self-reliant India that aims to reduce dependency on imports.
Ravi Shankar explains this to be a move that aims at making India a “big global player” in the manufacturing sector of electronics. For him, this view is not against any country, and only India positive.
Hope you enjoy the article “MAKE IN INDIA: $ 1.5 BILLION TO BE INVESTED IN INDIA BY 24 COMPANIES” stay tuned for more updates.
Read Also: DREAM 11: IPL’S NEW TITLE SPONSOR