India’s mega plans to have a flourishing smartphone manufacturing facility in the country got off to a flier with a massive development involving some of the largest names in the smartphone industry, which include the likes of Apple and Samsung. As a matter of fact, Samsung and no fewer than three manufacturing partners of Apple happen to be among the sixteen firms to have won incentives worth $6.65 billion under India’s federal plans in a bid to boost production of smartphones domestically.
The said plan scales to a period of five years and could well see production of some of the finest and most-talked-about smartphone brands in India, a forward-looking move that has the capacity to induce great change for the economy, especially amid a time where there’s durress.
The companies whose participation in the incentive plan was only recently approved by India had, as a matter of fact, applied for an incentive program, as of August 2020.
India’s plan to have some of the leading lights in the smartphone industry manufacture here carries the robust promise of producing smartphones and electronic components worth more than $143 Billion over the next five years.
And in return for participating in the aforementioned mega manufacturing plan, the participants can have access to incentives worth 4 to 6 percent on additional sales of goods produced locally over a course of five years, with the 2019-2020 period serving as the base year.
At a time where one of the fastest-growing economies of the world is jostling with ideas on how to revive an ailing economy, this federal plan is promising to say the least. Apart from that, it also bears the importance of using the fruition of this ambitious plan to boost the concerned sector even more.
On the outset, while this may read like any big, adventurous, or future-looking moves, at its core, the mega plan holds the potential to create several key jobs, apart from improving India’s export situation, the latter of which could be such a key in these testing times.
Having said that, Tech Crunch, reporting more on the developing story happened to highlight some key points and stated:
New Delhi’s move is aimed at significantly improving India’s manufacturing and exporting capacities and generating more local jobs. Around 60% of the locally produced products will be exported, the Indian ministry said. The companies will generate more than 200,000 direct employment opportunities in next five years and as many as 600,000 indirect employment opportunities during the same period, the ministry said.
The move is also a precursor to how the dynamics among major smartphone makers might change in India, the world’s second-largest market, over the next few years. The inclusion of Foxconn, Wistron, and Pegatron underscores how rapidly Apple plans to expand its local manufacturing capabilities in India. Wistron began assembling a handful of iPhone models in India three years ago, followed by Foxconn. Pegatron has yet to start production in India.
That told, the Ministry of Electronics and Information Technology, elaborating on how the step could further boost India’s image as the preferred destination for manufacturers, highlighted the significance of the move:
“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.”
But if you were to analyze the overall prospect of the development, you’d feel glad as to how it could contribute positively to the growing hope of seeing India as the second-largest market for smartphones, over the period of the next half a decade. What do you think?