Apple’s three contract manufacturers — Foxconn, Wistron and Pegatron — are availing the scheme. While Foxconn and Wistron have been making iPhones in the country, Pegatron is set to commence manufacturing next month.
The exports of electronics goods from the country rose over 41% to reach $15 billion in 2021-22, from $10.6 billion in 2020-21, primarily led by a huge jump in mobile phone exports. In fact, due to the production-linked incentive (PLI) scheme, the mobile phone exports increased by 75% to reach $5.5 billion in the current fiscal, from $3.16 billion in 2020-21.
Not only was there a growth in mobile phone exports, the country was also able to explore new markets. As per Indian Cellular and Electronics Association (ICEA), in the past, mobile phones from India were primarily exported to South Asia, Africa and parts of the Middle East/Eastern Europe. But now, Indian mobile exports target some of the most competitive and advanced markets in Europe and developed Asia. These markets demand the highest levels of quality, and manufacturing units located in India are up to the task. The rise in exports is primarily a result of the PLI scheme for smartphones, which was launched on April 1, 2020, with the main focus to shift global value chains to India. As a result of the scheme, Apple made India one of its manufacturing hubs. Apple’s three contract manufacturers — Foxconn, Wistron and Pegatron — are availing the scheme. While Foxconn and Wistron have been making iPhones in the country, Pegatron is set to commence manufacturing next month.
Apart from that, Samsung, Rising Star and local companies like Lava, Bhagwati (Micromax) Padget Electronics, UTL Neolyncs and Optiemus Electronics are availing incentives. During a five-year period, the approved companies under the PLI scheme are expected to lead to total production of over Rs 10.5 trillion, of which nearly 60% will be contributed by exports to the tune of Rs 6.5 trillion. It is also expected that during this period, nearly 800,000 new jobs (200,000 direct and 600,000 indirect jobs) will be created in the country.
“The unprecedented increase in smartphone exports is a tribute to government-industry partnership under the most trying circumstances. Government led with its vision and trust in the mobile industry. The industry, in turn, has redefined Atmanirbhar Bharat as Make in India for the World. We are just getting started,” Pankaj Mohindroo, chairman of ICEA, said.
Under the smartphone PLI scheme, the government has allocated Rs 40,951 crore between 2020-21 and 2025-26, where participating companies are allowed to choose any five years out of the six years for meeting their production targets.
https://www.financialexpress.com/industry/mobile-phone-exports-jump-75-in-2021-22/2471199/
