With the Indian Government’s push for an Atmanirbhar Bharat, the importance of local manufacturing products has increased in the market. as such the government is leaving no stones unturned to make sure that the local manufacturing and exports get enough fundings.
On Wednesday, the center approved a 73.5 billion rupee ($1.02 billion) plan to boost local manufacturing and exports of IT products such as laptops, tablets, personal computers, and servers. And also, the federal cabinet last week approved a $1.68 billion plan to promote local manufacturing and export of telecoms and networking gear.
The production-linked incentive (PLI) plan will help India export IT goods worth 2.45 trillion rupees. The new plan provides manufacturers cash-backs of between 1% and 4% of additional sales of locally made goods over four years, with 2019-2020 as the base year.
“The focus of the scheme is to get global champions to India and to make national champions out of local manufacturers.”
but it’s not just the Indian-based manufacturers who will reap the benefits of PLI. According to sources, the PLI plan is also likely to help U.S. tech giant Apple Inc who is planning to assemble some of its iPad tablets in India.
Foxconn and Wistron have already set up their manufacturing plants in India and using PLI they can expand their business further. Pegatron has also planned to enter the Indian territory.
According to reports, the three Taiwan companies have committed to invest roughly $900 million to make iPhones in India as part of a $6.7 billion PLI plan launched by the government last year.
The success of India’s planning strategy and the fact that it is one of the biggest markets in the world has helped turn the country o become the world’s second-biggest mobile maker after China. Though we still have not received any substantial decrease in the prices of smartphones.