Ministry of Electronics and Information and Technology (MeitY) has approved 16 eligible applicants under the PLI Scheme.
The international mobile phone manufacturing companies that are approved under Mobile Phone (Invoice value Rs 15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.
Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) 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.
Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are approved by MeitY. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.
Six companies are approved under the Specified Electronic Components Segment which include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
Over the next five years, the approved companies under the PLI Scheme are expected to lead to total production of more than Rs 10.5 lakh crore. Out of the total production, the approved companies under Mobile Phone (Invoice Value Rs 15,000 and above) segment have proposed a production of over Rs 9 lakh crore, The approved companies under Mobile Phone (Domestic Companies) segment have proposed a production of about Rs 1,25,000 crore and those under Specified Electronic Components segment have proposed a production of over Rs 15,000 crore.
The companies approved under the scheme are expected to promote exports significantly. Out of the total production of INR 10.5 lakh crore in the next 5 years, around 60% will be contributed by exports of the order of Rs 6,50,000 crore.
The companies approved under the scheme will bring additional investment in electronics manufacturing to the tune of Rs 11,000 crore.
The companies approved under the scheme will generate more than 2 lakh direct employment opportunities in next 5 years along with creation of additional indirect employment of nearly 3 times the direct employment.
Domestic Value Addition is expected to grow from the current 15-20% to 35-40% in case of Mobile Phones and 45-50% for electronic components.
With the demand for electronics in India expected to grow manifold by 2025, Hon’ble Minister expressed confidence that PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to Atma Nirbhar Bharat.