Prime Minister Narendra Modi on 12 May 2020 announced an Economic package worth 20 lakh crores to retrieve the Indian Economy. The Prime Minister used the word Aatmanirbhar Bharat, during his speech and talked about making India Self-reliant. The PM announced the Rs.20 lakh crore consolidated economic package in order to make India “Aatma-nirbhar” or self-reliant in the wake of the corona virus pandemic. In relation to the Aatma Nirbhar Bharat scheme, the Government has introduced a Production Linked Incentive Scheme (PLI) To offer a Production Linked Incentive to boost Domestic Manufacturing and to attract larger Investments in Mobile phone manufacturing and specified electronic components.
The Government’s Flagship program to improve the mobile phone manufacturing in India has got a significant push as 22 companies including Samsung and Apple-partner Pegatron have signed up to avail the benefits, and incentives of the PLI scheme. Under the PLI Scheme, an incentive of 4 to 6% on incremental sales of goods under target segments that are manufactured in India is given to eligible companies. The Scheme has a time period of five years subsequent to the base year (FY20). The Two Other Global contract Manufacturers of Apple including Foxconn and Wistron have also applied for the PLI Scheme, highlighting the iPhone makers cooperative attempts to shift production away from China amid Sino-US geopolitical tensions arising, with India being the beneficiary.
As per the Government statistics for Applications to the Rs 41000 crore-PLI Scheme, 22 companies have sought incentives. Out of the companies applied for the PLI scheme, five international players including Samsung, Foxconn- through two units, Wistron and Pegatron and five domestic players- Lava, Dixon, Micromax, Padget Electronics, Sojo and Optiemus will be aided by the government to develop their Manufacturing environment in India.
Other top Chinese Players such as Oppo, Realme, Oneplus and Vivo have not applied for the PLI Scheme. It is expected that in the coming five years, PLI Scheme will help boost the total Production to nearly Rs.11.5 lakh crore. Of This, the companies under Mobile phone segment have presented a production of over Rs. 9 lakh crore and the companies under Domestic Mobile Phone segments have pitched for a production of about Rs.2 lakh crore.
It is likely that via this scheme, exports will get a major boost and direct employment generation of nearly 3 lakhs in next five years will also take place.
