Apple was earlier in talks with the Indian Government to move the manufacturing units of iPads to India. Looks like the plans have started to unravel, as the Indian Government clears the PLI Plan.
Indian Government’s Rs. 7,350 Crore Game Plan
The Indian Government today has cleared an Rs. 7,350 Crore PLI plan that aims to increase local manufacturing and exports of IT products such as laptops, tablets, PCs and servers.
Electronics and Information Technology and Communications, Ravi Shankar Prasad, today announced the Indian Governments massive new move which will help India move Rs. 2,45,000 crore worth of IT goods out of the country.
The new scheme gives cash backs to manufacturers within the range of 1%-4% of additional sales of locally made goods over 4 years, with 2019-2020 as the base year.
Under PM Modi’s policy expansion spree Apple’s suppliers like Foxconn and Wistron have expanded their bases in India while Pegatron has set its base up in India. Huge investments in the categories of millions have been made, promoting the #MakeInIndia campaign which in turn is boosting local employment and increasing specifically skilled labour in India.
Indian Government’s $6.7 billion PLI plan boosted smartphone manufacturing in India making India the world’s second-largest mobile manufacturer after China. Apple’s interest in shifting dependency on Chinese manufacturing has also led to a rise in the production of iPhones in Indian facilities.
While exports worth Rs. 2.45 lakh crore is estimated over the four-year timeline, Rs. 3.26 lakh crore worth of production is also expected. Delhi seems to be on a success spree after the smartphone-production-boosting plan really took off. The federal cabinet has also approved a plan to promote local manufacturing and export of telecom and networking gear. The plan is worth Rs. 12,150 crores.