New Delhi: The Indian government on Tuesday said it was approving incentives to 16 companies, including top Apple suppliers Foxconn, Wistron and Pegatron, under an India federal plan to boost domestic smartphone production.
Smartphone industry in India has become a cornerstone after PM Narendra Modi’s “Make In India” drive. The “Made in India” purpose will see $6.65 billion incentive scheme a part of the government’s aim to make India into an export and manufacturing hub.
Of the 16 companies approved in the scheme, three are prominent Apple supply chain partners: Foxconn, Wistron, and Pegatron, Those companies, all of which help produce various iPhone models, must invest in India’s local manufacturing to earn the incentives.
However, India didn’t specify how much Apple supply chain partners plan to invest. A previous report suggested that Apple suppliers could support a total of almost $900 million in india’s local manufacturing in the next five years.
Samsung, which runs ‘world’s most giant mobile phone manufacturing plant on the outskirts of New Delhi, has also received approval in the scheme, as well as local Indian smartphone manufacturers like Lava and Micromax also got approved India’s tech ministry, said in a statement.
The approved companies are expected to produce smartphones and components of more than 10.5 trillion rupees ($143.05 billion), the statement also said.
The scheme offers a production-linked incentive involving cash worth 4% to 6% of additional sales of goods made locally over five years, with 2019-2020 as the base year.
Apple has been expanding its manufacturing footprint in the country in recent years. The Cupertino tech giant has plans to locally produce the iPhone SE sometime in the near future, as well as currently unreleased “iPhone 12” models by mid-2021.