Ravi Shankar Prasad, IT Minister of India announced in a press conference on Saturday that Samsung, Apple’s contract manufacturing partners including Foxconn, Wistron, and Pegatron along with Indian smartphone vendors Micromax and Lava have applied for the country’s $6.5 billion incentive program that is designed to boost the smartphone manufacturing in India.
In the press conference, he said that the scheme called Production-Linked Incentive Scheme will offer a range of incentives to companies to the companies including a 6% financial incentive on addition sales of goods produced locally over five years with 2019-2020 set as the base year.
He also noted 22 companies that have applied for this incentive program agreed on manufacturing of electronics components and export 60% of their locally produced units outside India.
He said that the companies estimate to produce smartphones and components worth $153 billion during this five-year duration. The companies have also agreed to offer direct and indirect employment to about 1.2 million Indians.
“We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” he said.
Samsung and Apple are two of the biggest names that have joined this incentive program but the names of major Chinese smartphone vendors Oppo, Vivo, OnePlus, and Realme were not found on the list while the Chinese smartphone makers dominate about 80% of the Indian smartphone market.
The participation of Wistron, Foxconn, and Pegatron indicates Apple’s future plans in India. Recently, Foxconn started assembling a small batch of iPhone 11 units at the Chennai plant in India.