Apple’s South Korean companies New Delhi said on Saturday that contracting partners Foxconn, Western and Pegtern and Indian smartphone vendors Micromax and Lava, among others, had applied for India’s 6. 6.6 billion concessional program aimed at local Promote smartphone manufacturing.
Called a production-linked concession scheme, the scheme will offer companies a number of incentives, including a 6 per cent financial rebate on additional sales of locally manufactured goods over a five-year period, including India’s IT minister. Ravi Shankar has set 2019-2020 as 20 years. Prasad said in a press conference.
Prasad said 22 companies have applied for the incentive program. It also involves the manufacture of electronics components. He said the companies estimate that they will manufacture 3 153 billion worth of smartphones and components over a five-year period.
Prasad said the ProductionLink concession scheme aims to turn India into a global hub for high-end smartphone manufacturing and to support Prime Minister Narendra Modi’s pressure to make the country self-sufficient.
The Indian minister said that as part of their applications, the companies also agreed to offer direct and indirect employment to about 1.2 million Indians.
Prasad said the interest of two companies, Samsung and Apple, which account for more than 50% of global revenue from smartphone sales, is a testament to what they see in the world’s second-largest Internet market. “Apple and Samsung, India welcome you with attractive policies. Now expand your presence in the country, “he said.
Deprived of the list of companies that the Indian Minister today revealed that Chinese smartphone maker Oppo, Vivo, OnePlus, and Realm have not applied for the incentive program.
The Indian government has not barred companies from any country from participating in the program, Prasad insisted in a meeting with reporters on Saturday afternoon. According to research firm Canali, Chinese smartphone sellers command about 80% of the Indian handset market.
“We are optimistic and looking forward to building a strong ecosystem across the value chain and aligning with global value chains, thus strengthening the electronics manufacturing ecosystem in the country,” he said. The deadline to apply for the India program, which began in April, ended this week on Friday.
The participation of Wistron, Foxconn, and Pegatron also indicates Apple’s future plans to produce locally in India. Taiwan-based Western, Apple’s contracting partner, first began assembling older iPhone models in 2017. Last month, Foxconn began assembling a small batch of iPhone 11 units. This was the first time that any Apple supplier had assembled the current generation iPhone model in the country.