The central government has approved Rs 357.17 crore for Apple’s vendor Foxconn India and Rs 58.29 crore for Dixon Technologies subsidiary Padget Electronics under the Production-Linked Incentive (PLI) scheme for mobile phones.
Niti Aayog in a statement said that the proposals for disbursement of incentives, presented by the Ministry of Electronics and IT, were considered by the Empowered Committee, comprising Niti Aayog CEO Param Iyer, DPIIT Secretary Anurag Jain, MeitY Secretary Alkesh Kumar Sharma, and others members.
“Foxconn Hon Hai Technology India Mega Development is the first global company that has been approved under the target segment ‘Mobile Phones’ (category: invoice value Rs 15,000 and above) to receive incentive under mobile manufacturing for the period 1 August 2021–31 March 2022 based on its incremental investments and sales figures,” it said.
Apart from that, this is the first time the center has approved an incentive for an international company involved in electronics manufacturing in India.
Niti Aayog added, “Padget Electronics, a domestic company, has been approved by the committee to receive incentive under mobile manufacturing for the quarter January–March 2022 based on its incremental investments and sales figures under the target segment ‘Mobile Phones’ (category- domestic companies). The incentive amount approved is Rs 58.29 crore.”
As of September 2022, the PLI scheme for Large-Scale Electronics Manufacturing (LSEM) has attracted investment of Rs 4,784 crore and led to a total production of Rs 2,03,952 crore, including exports of Rs 80,769 crore.
“The scheme has also generated employment of 40,916. Electronics manufacturing is expected to rise to USD 300 billion by 2025-26,” the statement added.
Also, the production of mobile phones has risen from about 6 crore in 2014-15 to approximately 31 crore in 2021-22.
India exported Rs 45,000 crore worth of mobile phones in FY 2021-22 and during the current year up to November 2022, mobile phone exports have already crossed Rs 40,000 crore.
The think tank also added that the PLI for the LSEM sector has attracted global players like Foxconn, Samsung, Pegatron, Rising Star and Wistron while domestic firms like Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics, have also participated in this scheme .
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