India approves Apple’s manufacturing partners and Samsung for a $143 billion smartphone manufacturing plan

Recently, India imposed a 10% import duty on display and touch panels to increase domestic electronics production. Now the country approved Apple’s manufacturing partners and Samsung for a $143 billion smartphone manufacturing plan.

Samsung and Apple applied for the incentive plan in August, after the approval from the country, both smartphone manufacturing firms will get $6.65 billion incentives under the “Make in India” program to boost local smartphone production in the next five years.

The Ministry of Electronics and Information Technology in India said in a statement that, “these companies will be producing smartphones and other electronics parts worth more than $143 billion over the next five years. In return, India will offer them an incentive of 4% to 6% on additional sales of goods produced locally over five years, with 2019-2020 set as the base year.”

India’s decision is pointed out to improve the country’s domestic manufacturing and exporting capacities as well as creating possibilities for jobs. The companies will generate more than 200,000 direct, and 600,000 indirect employment opportunities in the next five years, the ministry said.

Three of Apple’s production partners, Wistron, Foxconn, and Pegatron marks to swiftly increase its manufacturing capabilities in India. One of them, Wistron started assembling Apple’s iPhones in India three years ago.

“Apple and Samsung together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country,” the ministry said.

“Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a self-reliant India,” the ministry added.

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Local smartphone manufacturers including Lava, Micromax, Padget Electronics, UTL Neolyncs, and Optiemus Electronics also won the approval in the incentive scheme while the Chinese smartphone makers are not listed including Oppo, Vivo, OnePlus, and realme because they had not applied for the program.

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