Back on December 28, Indian prime minister Mr. Narendra Modi met the top executives of Apple, Samsung, and Lava. Besides, on the first day of April this year, a scheme called Production-Linked Incentive (PLI) was notified. This scheme is to gear up our domestic activities over the electronic products as well as to attract tech giants towards our country.
As a result, expected, Apple probably is trying to shift its a fifth of production from China to India. As per Economictimes, several meetings between top-ranking government officials and senior executives of Apple are going on from the past few months. Because of the shift, the local manufacturing revenue may go up to around $40 billion in the next five years. And If everything goes fine, Apple will be the largest exporter in our country.
A senior government official said, “We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme.”
Sad to inform, it seems the authority is facing some problem to take their steps. And that problem needs to be sorted out early. A person to ET said, “There are some problems with some of the clauses. For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme are some of the irritants.”
As per the PLI scheme I mentioned earlier, a company needs to manufacture phones worth $10 billion at least in phases between 2020 to 2025 to get the benefits. The Indian government expects to take the mobile export from $3 billion (2019-20) to $100 billion with the help of this PLI scheme.
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