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Companies will produce mobile phone & components in India worth Rs 11.5 lakh crores in 5 years

Vikram1

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Apple vendors, Samsung, others line up with Rs 11 lakh crore mobile phone manufacturing proposals: Prasad
PTI | Updated: Aug 1, 2020, 16:51 IST










(Representative image)

NEW DELHI: As many as 22 domestic and international firms, including iPhone maker Apple's contract manufacturers as well as Samsung, Lava, Dixon and so forth, have lined up with proposals for mobile phones production worth Rs 11 lakh crore over the next five years, Union telecom and IT minister Ravi Shankar Prasad said on Saturday.
The minister said these proposals under the government's Rs 41,000-crore production-linked incentive (PLI) scheme for mobile phone manufacturing are expected to create around 12 lakh jobs, 3 lakh direct and 9 lakh indirect employment opportunities in the country. While, domestic value addition is expected to grow from the current 15-20 per cent to 35-40 per cent in case of mobile phones and 45-50 per cent for electronic components.
"There will be huge (mobile phone) production of around Rs 11 lakh crore, huge export of around Rs 7 lakh crore and great employment opportunity for 3 lakh direct and 9 lakh indirect people. I personally thank all the companies that have applied," Prasad told reporters.
He said that a total of 22 companies have filed applications under the PLI scheme from various countries including Taiwan, South Korea, Germany, Austria, etc.
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"The benchmark for international companies was that they make mobile phones priced at or above Rs 15,000. International companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," Prasad said.
Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
There is no price limit for Indian companies under the scheme.
In terms of revenue, Apple accounts for 37 per cent and Samsung 22 per cent for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the ministry of electronics and IT (Meity) said.
The minister further said these companies will make thousands of crores investments based on the approval of their proposal.
Prasad said Indian companies, including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services and Optiemus Electronics, have applied under the scheme and 10 companies have filed applications under the Specified Electronic Components Segment.
The companies that have applied for components production of around Rs 45,000 crore include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.
There were no applications from Chinese companies under the scheme.
The minister said India is not averse to investment from any country but companies will have to follow rules related to security clearance, etc.
The government notified production linked incentive scheme for large scale electronics manufacturing, the scheme for promotion of manufacturing of electronic components and semiconductors, and the modified electronics manufacturing clusters (EMC 2.0) scheme.
Prasad noted that with the demand for electronics in India expected to grow manifold by 2025, PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to Atmanirbhar Bharat.
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The government expects to attract Rs 1 lakh crore investment in the sector and sees a target manufacturing revenue potential of Rs 10 lakh crore by 2025.
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.
In Video:India to produce smartphones worth Rs 11.5L cr: Ravi Shankar Prasad


 

rishav

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Chinese companies like vivo , oppo , oneplus didn't apply for the scheme . Right time to raise the import duties further and tighten the screws around these still growing chinese companies and prevent them from gaining more share in Indian market .
Foxconn manufactures phones of xiaomi so they are safe and infact they seem to be investing in manufacturing in India . So that is good .
 

Baba_Yaga

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Chinese companies like vivo , oppo , oneplus didn't apply for the scheme . Right time to raise the import duties further and tighten the screws around these still growing chinese companies and prevent them from gaining more share in Indian market .
Foxconn manufactures phones of xiaomi so they are safe and infact they seem to be investing in manufacturing in India . So that is good .
In this hysteria, it is is essential not to take stupid actions against Chinese companies that send a wrong message to investors. Firstly, Chines companies are big investors in India. They deserve a lot of credit for turning India into a mobile production house and generating millions of jobs. We need them as much as they need us. Secondly, all these companies like Apple, Samsung etc will have components that they will need to import from China. If all of a sudden you start banning chinese intermediate goods, that's a message to all future investors that Do not invest in India since the government can ban any import you need at any time. You will actually see a lot of companies exiting India if that happens.

Government needs to work for a few weeks and make a list of intermediate goods and finished goods that are imported from China. Lower the duties on intermediates and increase the duties on finished goods to very high levels. In time, as manufacturing moves to India, we can give incentives to companies to manufacture these intermediates in India and gradually increase duties on them to force companies to do so.
 

Dem!god

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Chinese companies like vivo , oppo , oneplus didn't apply for the scheme . Right time to raise the import duties further and tighten the screws around these still growing chinese companies and prevent them from gaining more share in Indian market .
Foxconn manufactures phones of xiaomi so they are safe and infact they seem to be investing in manufacturing in India . So that is good .
Stupid analysis, all major chinese phone manufacturer are assembling their phones in india, even if the indian components in those phones are only 15-20%, its still a substantial value additional and as time will pass they will use more and more indian components. It provide large employment opportunity as well as earn us foreign reserve. India became 2nd largest manufacturer/assembler of phones because of these Chinese brands.
Illogical decision based on emotional rants always lead to failure.
Import of fully furnished electronic items should be limited but assembling and manufacturing in India should always be encouraged.
 

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