India aims to boost domestic mobile phone production. Announces incentives to manufacturers. Plans 154 billion dollars turnover in five years

India has the chance to become a manufacturing powerhouse of cell phones and other telecom equipment

India has the chance to become a manufacturing powerhouse of cell phones and other telecom equipment
India has the chance to become a manufacturing powerhouse of cell phones and other telecom equipment

India comes with a big business promotion plan to boost the domestic production of mobile phones and export with an aim to create Rs.11.5 lakh crores ($154 billion) turnover in five years and three lakh direct and nine lakh indirect jobs. In a bid to give a boost to the domestic production of mobile phones, accessories and reduce the import, the Government on Saturday launched a Production Linked Incentive(PLI) Scheme. The scheme is expected to promote exports significantly around sixty percent of the production. By this PLI Scheme, in five years the expectation of total production is above Rs.11.5 lakh crores in five years including the export of Rs.7 lakh crores, said Ravi Shankar Prasad, Minister for Electronics and Information Technology. He also said that the PLI scheme will generate approximately three lakh direct employment opportunities in the next 5 years along with the creation of additional indirect employment of nearly three times the direct employment.

“PLI Scheme to herald a new era in mobile phone and electronic components manufacturing. Production of Rs. 11.50 lakh crore and out of the total production we are aiming 60 percent of it for exports in the next five years. This is a major boost to Prime Minister Narendra Modi’s “Make in India” and “Atma Nirbhar Bharat.” We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country” said Prasad.

“Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the scheme.

Minister said that many applications are received as well as from global companies for manufacturing mobile phones and electronic components in India under the PLI Scheme. “A total of 22 companies have filed their application under the PLI Scheme. The international mobile phone manufacturing companies that have applied under Mobile Phone (Invoice Value INR 15,000 and above) Segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron, and Pegatron. Out of these, 3 companies namely Foxconn Hon Hai, Wistron, and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country,” said Electronics Ministry in a statement.

“Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Dixon Technologies, Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the scheme. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production. 10 companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco, and Neolync,” added the statement.

Though India launched a mobile phone in 1994, the production of mobile phones in India started with Nokia starting a plant in Chennai in 2004. But due to unfriendly taxation, Nokia was forced to shut the shop. Till recently the Indian mobile industry was mainly imported from China, South Korea. Recently in 2019, India facilitated the biggest factory of Samsung in Noida and Apple also started manufacturing from India.

Team PGurus

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