India has been pushing for companies to manufacture in India for quite a while now. Today we see not just Samsung and Xiaomi but also Apple making its phones in India to cater to the Indian market as well as globally.?
And now, the Indian government has decided to take this to the next level. India has approved a Rs 7,350 crore plan to boost local manufacturing and exports of tech products, according to minister Ravi Shankar Prasad.?
As per his claims, the PLI (production linked incentive) scheme will help Indians export tech goods worth Rs 2,45,000 crores. The scheme aims to offer cash backs to manufacturers between 1 percent and 4 percent of additional sales of goods manufactured locally over four years while keeping 2019-2020 as base years.
Prasad claims that this scheme will not only upskill local manufacturers, making them global champions, ¡°The focus of the scheme is to get global champions to India and to make national champions out of local manufacturers," while also adding that this could help create much-needed jobs for the nation.
This PLI scheme will also be instrumental in helping the Cupertino giant to manufacture its iPads in India -- something it has been planning on since a few months now.?
The new PLI scheme has motivated existing Apple products manufacturing facilities at Foxconn and Wistron to expand further. Moreover, it also enabled bringing of Pegatron to India to set up its operations for manufacturing more Apple products.
The aforementioned Taiwanese companies have pledged to invest around $900 million (roughly Rs 6,510 crores) to manufacture iPhones in India as a part of the $6.7 billion PLI plan that was introduced by the government last year.?
We¡¯re already seeing iPhone 11 and iPhone XR being manufactured in India. Reports in the past had also hinted at the commencement of iPhone 12 manufacturing in India.?
Today, the push to make in India has resulted in the nation to be the second-biggest smartphone maker in the world, after China.?