India launches $6.7 billion plan to boost electronics manufacturing
By Sankalp Phartiyal
NEW DELHI (Reuters) - India launched a $6.65 billion plan on Tuesday to boost electronics manufacturing, saying it would start by offering five global smartphone makers incentives to establish or expand domestic production.
The government is offering a production-linked incentive (PLI) involving cash worth 4% to 6% of additional sales of goods made locally over five years, with 2019-2020 as the base year, technology minister Ravi Shankar Prasad told a news conference.
Names of the five companies, which would have to meet investment and sales thresholds to be eligible, were expected to be announced in the next two months, ministry officials said.
Five Indian firms would also be selected for the PLI scheme, which, along with two other related initiatives, could help India produce smartphones and components worth 10 trillion rupees ($133 billion) by 2025, Prasad said.
The smartphone industry has become a showpiece for Prime Minister Narendra Modi's 'Make In India' drive. The government now wants to make the country an export hub.
Global players such as Samsung and Taiwanese firms Foxconn and Wistron, which both supply Apple, have already ramped up local production, attracted by India's huge market of 1.3 billion people.
The new plan also includes schemes to drive up production of components and create manufacturing clusters with pre-built factory sheds and common facilities for companies to move in immediately.
The problem with India is they struggle to produce enough power for factories. Toyota had this issue until they installed solar panels to supplement the governments power.
Too little too late!
This is a good start. You cannot compete with china on labor costs but you can produce phones and equipment for India and India people (1.3 billion) in India. It is never too late to do something good for the people of India after 70 years for congress corruption.
With a population of 1.3 Billion Smart, Tech Savvy, Yuppies, India is a Huge market, waiting to be tapped.
India is finally following China's footsteps. It took China 30 years to get there.
Brilliant move by Modi. India will be the big beneficiary as the world pulls supply chain out of China. India wins
Some body should teach this guy that India is at the bottom of Global Hunger Index. Solve that first.
US needs to help india gear up cell phone production. Great competition on existing phones. Result in price drops, long overdue.
Great move. Get all manufacturing out of China.
Great news take all manufacturers out of China and take them to India and other Asian countries.