The Ministry of Electronics and Information Technology (MeitY), on Tuesday (October 16), approved 16 applicants under the PLI (Production Linked Incentive) scheme for large scale electronics manufacturing in the country.
Out of these, Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37 per cent) and Samsung (22 per cent) together account for nearly 60 per cent of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country, an official statement said.
The scheme extends an incentive of 4-6% on incremental sales to the companies, which would enable them to make fresh investments as well as look at higher revenue from the domestic market as well as exports.
Out of the total production of Rs 10.5 lakh crore in the next 5 years, around 60 per cent will be contributed by exports of the order of Rs 6.5 lakh crore, aimed at making India Atmanirbhar (self-reliant).
The companies will also generate more than 2 lakh direct employment opportunities in the next five years along with the creation of additional indirect employment of nearly 3 times the direct employment, the statement said.
“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,” a tweet by the ministry quoted Union Minister for Electronics and IT, Ravi Shankar Prasad, as saying.
Local manufacturers Lava, Padget Electronics Pvt., UTL Neolyncs and Optiemus Electronics Ltd. were also approved under the plan.