The Centre on Tuesday approved 16 proposals from marquee brands, including makers of Apple devices, under two new flagship schemes, in a move expected to fetch Rs 11,000-crore additional investments in local electronics manufacturing. In turn, this would imply production worth Rs 10.5 trillion over the next five years, giving a fillip to Prime Minister Narendra Modi’s Make in India and Atma Nirbhar Bharat schemes.
A statement issued by the Ministry of Electronics and Information Technology said that of the total, Rs 6.5 trillion worth of electronic goods will be exported by 2025 under the Production Linked Incentive (PLI) plan.
As part of the newly introduced PLI scheme, five applications have been approved from international electronics manufacturing majors Foxconn, Wistron, Pegatron (all three makers of Apple products besides other brands), Samsung and Rising Star. These proposals are expected to translate into production of Rs 9 trillion worth of mobile phones priced above Rs 15,000.
Five proposals from Indian manufacturers — Micromax, Lava, Padget Electronics, UTL Neolyncs and Optiemus Electronics--have also been cleared. These five are estimated to have a potential to manufacture Rs 1.25 trillion worth of handsets in the next five years. In addition, proposals from AT&T, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync have got the go-ahead. These firms are expected to manufacture electronic components worth Rs 15,000 crore in the country.
According to the Ministry of Electronics and Information Technology, once implemented the projects would generate over 200,000 direct and 600,000 indirect employment opportunities in the next five years. “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”, said Ravi Shankar Prasad, minister, Meity.
Apart from helping the overall electronics ecosystem in the country, this move will turn Apple’s fortunes in India, according to analysts. “This is a major boost for Apple. Now they will seriously consider higher volume production and exports from India,” said Navkendar Singh, research director, IDC. The US tech major is planning to begin local production of its upcoming iPhone 12 by next April – within six months of its launch.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard