Samsung, Apple to boost cellphone manufacturing in India

Inside the Most Ambitious Push Yet to Make iPhones Outside China

Apple vendors, Samsung, others line up with Rs 11 lakh crore mobile phone manufacturing proposals: Prasad

"Besides this, we have received commitments to make mobile phone and parts worth Rs 11.5 lakh crore", Prasad said.

Union telecom and IT minister Ravi Shankar Prasad has announced that as many as 22 domestic and global firms have lined up with proposals for mobile phones production worth Rs 11 lakh crore, which have potential to create direct and indirect jobs for around 12 lakh people over the next five years. He added that while 22 applications were received for Mobile And Electronics PLI Scheme, 40 companies have shown interest in the components scheme.

Production-Linked Incentive Scheme is a scheme launched by the IT ministry which would give incentives of 4-6 per cent to electronics companies that manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as microelectromechanical systems in India.

The minister of electronics and IT Ravi Shankar Prasad on Saturday announced a healthy response to the Rs 41, 000 crore Production Link Incentives (PLI) scheme, welcoming Apple and Samsung to India.

Prasad listed companies that have applied for the PLI.

"The benchmark for worldwide companies was that they make mobile phones priced at or above ₹15,000", Prasad said.

Out of these, 3 companies namely Foxcon Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.

Notably, Apple with 37 percent and Samsung with 22 percent together hold 60 percent of all global mobile phone sales revenue.

Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the domestic companies segment under this scheme.

The minister further said these companies will make thousands of crores investments based on the approval of their proposal.

Meanwhile, conspicuous by the absence in the list of applicants were Chinese players.

"We have proper rules and regulations with regard to our security and with bordering countries", he said.

Prasad made the remarks while addressing the media to explain the Centre's PLI scheme, adding that initiatives such as Digital India and Make in India have been "transformative programmes". The fresh proposals have exceeded the government's manufacturing revenue target but the final outcome will depend on the decision of the screening committee that will select projects eligible for incentives.

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