Apple Vendor Looks to Shift Production Lines to India, TOI Says

Yolanda Curtis
August 2, 2020

Though the government insisted that they had not stopped companies of any country from applying, most Chinese handset as well as component makers, which corner about 70 per cent of the global market, were absent from the list.

According to the Indian government, Apple's manufacturing partners will be taking part in the scheme, as well as Samsung and other local mobile device vendors.

The ministry also revealed that over 40 applications were also received for the Electronics Manufacturing Clusters (EMC) scheme aimed at boosting manufacturing of electronics components.

Apple's assembly partners Foxconn, Pegatron, and Wistron have all applied to participate in India's $6.6 billion Production-Linked Incentive Scheme, in a bid for benefits for increasing production of smartphones in the country.

Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics have applied, the government informed. "These companies will produce mobile phone & components in India worth Rs 11.5 lakh crores in the coming 5 yrs out of which products worth Rs 7 lakh crores will be exported".

CNBC-TV18 was the first to report on participation by Samsung and Apple's second largest contract manufacturer, Pegatron's application under the PLI scheme.

Under the scheme, for global mobile handset making companies, the minimum retail invoice price per unit has been set at Rs 15,000 to avail benefits and the incentive for the first year has been fixed at 6 per cent of their incremental sales.

Under the scheme, to avail the graded incentives ranging between 4% and 6% over a five-year period, manufacturers will have to produce high-end phones (with freight on board value of more than $200) of more than Rs 4,000 crore over and above their production level in the country in the base year. "Apple (37%) and Samsung (22%) together account for almost 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.

The companies that have applied for components production of around Rs 45,000 crore include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.

The worldwide firms have proposed production to the tune of Rs 9 lakh crore in the next five years.

"The benchmark for global companies was that they make mobile phones priced at or above Rs 15,000". He said, "I do not wish to take the name of any country".

These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.

As per government statistics for applications to the Rs 41,000-crore PLI scheme, 22 companies have sought incentives.

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