Government approves proposal to export made in India mobile phones worth $100 billion
Smartphone brands like Samsung, Lava, Karbonn and contract manufactures like Foxconn, Wistron, Pegatron are cleared to export smartphones made in India.
September 07, 2020 / 12:45 PM IST
The government has reportedly cleared a USD 100 billion proposal that allows manufacturers to export smartphones made in India to other parts of the world. Smartphone brands like Samsung, Lava, Karbonn and contract manufactures like Foxconn, Wistron, Pegatron are cleared to export smartphones made in India.
“The empowered committee has approved all applications estimated to export around USD100 billion (Rs 7.3 lakh crore) worth mobile phones under the production linked incentive scheme (PLI) and all the applications will be placed before the cabinet probably this week,” a senior government official told The Economic Times (ET).
The empowered committee includes the Niti Aayog CEO along with the secretaries of economic affairs, expenditure, revenue, the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT) and Directorate General of Foreign Trade (DGFT).
The report states that seven out of the total applicants are Indian, whereas five are overseas. Another six applicants are in the components manufacturing scheme.
Apple’s contract manufacturers — Foxconn, Wistron, Pegatron — and Samsung have submitted production estimates of phones worth USD 50 billion each in the next five years, according to the applications.
The government had launched the PLI scheme to boost the manufacturing of smartphones in India. Soon after the scheme was announced, several brands and suppliers showed interest by applying for the scheme and gain benefits worth Rs 41,000 crore.
Samsung is looking to manufacture mobile phones worth Rs 3.7 lakh crore in India over the next five years. Out of this, smartphones worth USD 30 billion, or Rs 2.2 lakh crore will be produced under the PLI scheme.
Apple, on the other hand, is already manufacturing a bunch of iPhones locally, including the latest iPhone 11. The company is said to assemble the iPhone 12 in India next year.