The government of India is currently working on attracting electronics component manufacturers under a new production-linked incentive (PLI) scheme, according to a new report. It will safeguard India’s booming electronics manufacturing industry and help us achieve genuinely Made in India devices.
Today, the majority of smartphones in India come with the “Made in India” label. However, these devices are not genuinely manufactured in India; they are assembled in the country. To address this, the Indian government is actively establishing an ecosystem that bolsters the thriving assembly sector in the country.
According to a report from MoneyControl, the new PLI scheme is designed to attract key component players from China, South Korea, Taiwan, and the US – countries that predominantly house manufacturing facilities in China – to establish manufacturing units in India.
The report further indicates that India targets electronics manufacturing worth $300 billion by 2026, with approximately $18 billion allocated for components.
Moreover, in line with the same goal, the Union Ministry of Finance recently reduced the import duties on key components used in mobile manufacturing by 5%. It includes elements like screws, SIM sockets, metal mechanical items, battery covers, front covers, primary lenses, back covers, GSM antennas, and polyurethane foam cases.
This effort is expected to significantly boost the export of Made in India smartphones.
According to Reuters, mobile phone exports from India are witnessing a surge. In the fiscal year 2022-23, they doubled to $11.1 billion compared to the previous year, and estimates suggest exports might reach $15 billion in 2023-24. Several big smartphone players have already established their manufacturing units in India. It includes big names like Apple, Samsung, Xiaomi, Realme, OnePlus, and more.
Apple has been manufacturing iPhones in India for a while now and is also contemplating expanding its production to include iPads and AirPods, aiming to reduce its reliance on China.
Additionally, Samsung has declared that, in addition to smartphones, they will start manufacturing their Laptops at their Noida factory, the company’s second-largest manufacturing facility globally.
