Reuters | Aug 01, 2020 18:20
By Sankalp Phartiyal
NEW DELHI (Reuters) - Apple Inc's (O:AAPL) Taiwan contract manufacturers Foxconn (TW:2317), Wistron Corp (TW:3231) and Pegatron Corp (TW:4938) have applied for funds from India's $6.65 billion scheme to boost smartphone manufacturing, the technology minister said on Saturday.
The production-linked incentive (PLI) plan offers companies cash incentives on additional sales of devices made locally over five years, with 2019-2020 as the base year. India wants to become a global smartphone export hub like China.
Apple assembles some smartphones, including the iPhone 11, at Foxconn and Wistron's plants in two southern Indian states.
Pegatron, one of Apple's top suppliers, has yet to open a plant in India, but is in talks with various states to set up operations, according to sources. Pegatron officials could not immediately be reached for comment.
Samsung has a plant on the outskirts of New Delhi that it describes as the world's biggest mobile phone manufacturing plant. It also exports devices from the factory.
Lava, which once assembled models for China's Lenovo (HK:0992), was among the Indian companies which have sought funds, Prasad added.
A total of 22 firms have applied to the scheme, which the government expects will generate smartphone production worth $154 billion (117.7 billion pounds) and create 300,000 direct jobs over five years.
Smartphone production has emerged as a bright spot in India's economy, thanks to Prime Minister Narendra Modi's emphasis on local manufacturing in a bid to create jobs.
With more than 1 billion wireless subscribers, of which about a third rely on basic handsets, India provides huge growth prospects for smartphone makers, as well as offering cheap labour.
Foxconn plans to invest up to $1 billion to expand a factory in Tamil Nadu state where it assembles iPhones, sources told Reuters last month.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.