India To Be Next iPhone Production Hub? Apple's Contract Manufacturers Apply For Govt's Rs 41,000 Crore PLI Scheme

The Rs 41,000-crore production-linked incentive (PLI) scheme of the Modi government that aims to make India a major production hub for exporting mobile phones is getting a positive response from the mobile phone manufacturers. So far, two Taiwanese and three domestic manufacturers have applied for the scheme while several others are soon expected to submit their applications for the same.

The applications for the scheme, which was launched in April, were invited beginning from this month.

Through the PLI scheme, the government aims to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

Two of Apple's Taiwanese manufactureres, Foxconn and Winstron, have applied for the scheme, Finacial Express quoted sources as saying.

Other major global players in the mobile manufacturing including South Korean Samsung and Singapore-based Flextronics are also expected to submit their applications for the PLI scheme soon.

Besides, Indian companies like Lava, Dixon Technologies and Karbonn have applied for the scheme so far.

The firms can apply till 31 July and the announcement of the selected companies will be done by early August.

According to the FE report, five global and five local companies will be selected initially for the scheme.

Foxconn, which makes phones for Apple and several other firms, already has a production facility in Chennai while the Wistron, which makes for Apple exclusively, has a factory in Bangalore.

However, these companies only make Apple phones for Indian market at present. Under PLI scheme, they would make phones in India for the export market as well.

Foxconn has reportedly submitted two applications - one in the name of Hon Hai Precision Industry Co and other as Rising Stars Mobile India Pvt Ltd. While the Hon Hai will mainly be making iPhones, Rising Stars will manufacture devices of other firms like Xiaomi, Oppo etc.