New Delhi, October 07
: Giving a major boost to make in India and the AtmaNirbhar Bharat Initiative, the Ministry of Electronics and Information and Technology approved the applications of 16 eligible electronic companies including mobile companies like Samsung, Apple, under the production linked incentive PLI. The approved companies are expected to manufacture mobile phones worth 10.5 lakh crore rupees over the next five years.
While giving approval of eligible applicants under the PLI Scheme, Ravi Shankar Prasad said that the PLI scheme has been a huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers. The industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat - a self-reliant India.
He further added that “we are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country."
The international mobile phone manufacturing companies that are approved under the Mobile Phone (Invoice Value INR 15,000 and above) Segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron, and Pegatron. Out of these, 3 companies namely Foxconn 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.
The domestic companies approved for mobile phone manufacturing under the scheme are Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics. These companies are expected to expand their manufacturing operations in a significant manner.
Apart from these companies, another 6 companies are approved under the Specified Electronic Components Segment which includes AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
The approved companies under Mobile Phone (Domestic Companies) segment have proposed production of about INR 1,25,000 crore and those under the Specified Electronic Components segment have proposed a production of over INR 15,000 crore.
The companies approved under the scheme are expected to promote exports significantly. Out of the total production of INR 10,50,000 crore in the next 5 years, around 60% will be contributed by exports of the order of INR 6,50,000 crore.
It will also bring additional investment in electronics manufacturing to the tune of INR 11,000 crore and will generate more than2 lakh direct employment opportunities in the next 5 years.