Pegatron, Apple's second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government's production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia's electronics powerhouses.
Notably, Apple with 37 percent and Samsung with 22 percent together hold 60 percent of all global mobile phone sales revenue. The incentives are applicable under the scheme from August 01 (Saturday).
The government had in June started inviting applications for three schemes-PLI, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme-offering a total of Rs 50,000 crore worth of incentives to attract global mobile device makers and boost local companies for electronics manufacturing.More news: Mexico's COVID-19 death toll becomes the world's third-highest
"They are expected to produce components of over Rs 40,000 crore over the period of next five years under the scheme", an industry source said.
Briefing reporters, telecom and IT minister Ravi Shankar Prasad on Saturday said Apple (37%) and Samsung (22%) together account for almost 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
"We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country", he said. "These companies will produce mobile phone & components in India worth Rs 11.5 lakh crores in the coming 5 yrs out of which products worth Rs 7 lakh crores will be exported".More news: Game Preview: Boston Red Sox at New York Mets
These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
Ten companies have filed applications under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.
"The scheme will generate around three lakh direct employment opportunities in next five years along with creation of additional indirect employment of almost three times the direct employment", Prasad said. The move could boost the value of phone output to 11.5 trillion rupees in the next five years, he said.More news: SpaceX capsule with astronauts returns to Earth
On the absence of the Chinese firms, IT minister maintained that the rules with respect to investment and security were clearly defined for countries neighbouring India. I don't wish to take the name of any country or of the company of any country. If the manufacturers achieve that, it would significantly enhance annual exports of phone handsets from the existing $3 billion.