As reported by credible sources, Pegatron Corp., Wistron Corp., and Foxconn, which are Apple Inc.’s Taiwan-based smartphone manufacturers, have applied for funds from India’s USD 6.65 billion scheme in a bid to improve smartphone manufacturing in the country.
According to industry experts, PLI (production-linked incentive) plan provides organizations with cash incentives based on the local sales of devices for over five years. Like China, India is apparently planning to become a major export hub for smartphones across the globe.
For those uninitiated, America-based technology giant Apple Inc. manufactures smartphones, including iPhone 11, at its Foxconn and Wistron plants in southern states of India. One of Apple’s top suppliers, Pegatron, has however not yet established a plant in India, but is reportedly in talks with various states to set up operations. Sources close to the matter stated that Pegatron administrators could not be reached for any statement
Technology minister Ravi Shankar Prasad mentioned in a comment that Samsung Electronics Co. Ltd. has also applied for this scheme. He further added that Lava International, which initially assembled models for China’s Lenovo, was among the few Indian companies that had applied for funds.
If sources are to be believed, total 22 companies have applied to India’s scheme, which according to the government will generate smartphone production of worth USD 154 billion and produce 300,000 jobs over the next five years.
Smartphone production has been a major contributor to India’s GDP with Prime Minister Narendra Modi promoting regional manufacturing to create jobs for the local population, experts claimed. India offers huge growth prospects for smartphone manufacturers as well as offers cheap labor on account of 1 billion wireless subscribers, with one-third of it relying on basic handsets.
As per sources, Foxconn is planning to invest over USD 1 billion in an effort to expand its factory in Tamil Nadu.