Vocal For Local: More Apple And Samsung Phones Will Be Made In India
Authorities have dropped clauses which involved evaluation of plant and machinery.
With companies getting more serious about shifting their manufacturing outside China, countries like India, Vietnam and Thailand have been making the space more tempting for smartphone makers to make the switch.
BCCL
We¡¯ve already been seeing iPhones and Samsung Galaxy phones, among several others being made in India.
However, now, the Indian government has done something that would pave the way for boosting manufacturing in India.
The authorities have dropped clauses which involved evaluation of plant and machinery to be brought from China and South Korea.
Apple and Samsung make in India
Officials aware about the discussion said in a statement to ET, ¡°The empowered committee of secretaries met on Friday and decided to remove the clause, which evaluated plant and machinery brought into India at 40% of its value, and has agreed to a few other changes so that manufacturing could shift to India in a big way.¡±
A few weeks ago, another ET piece had revealed that Apple¡¯s contract manufacturers Wistron and Foxconn were looking to ramp up iPhone production in India under the revised PLI scheme. However, during this time, Apple had raised concerns about some problems, one of them being the valuation of plant and machinery with the government.
The official has also revealed that Indian authorities are also in discussion with a third Apple manufacturer dubbed Pegatron to shift a part of its manufacturing facility to India.
Indian government easing norms
The authorities have also changed the clause that now includes the industry in discussions before making any major alterations to the PLI scheme after companies start manufacturing in India.
Reuters
Authorities have also removed several caps including a clause that stated that the government would issue incentive despite meeting its targets only if it had the money. This has now been replaced with a clause that permits companies to seek relief from the targets in time of natural calamities like COVID-19.
Another clause that sought excessive business information from the companies has also been watered down, upon investor¡¯s request.
The scheme is expected to give out incentives to both foreign as well as domestic smartphone makers over a period of five years. While the eligibility for foreign investors as well as domestic investors varies, a total of Rs 40,951 crore has been kept to the side as incentives for companies, that manage to achieve the production and incentive targets.
