India has Approved Incentives for 16 Smartphone Companies including Apple's Big Three iPhone Manufacturing Partners
In May Patently Apple posted a report titled "The Indian Government has dropped Contentious Clauses in their new 'Production Linked Incentive' Program that could be Positive for Apple." In order to gain from the new Incentive in India, Smartphone companies had to invest in the country in order to tap into the scheme. In late June we reported on Foxconn making a huge investment in an iPhone plant in India. Last week we reported that Pegatron was going to open a plant supporting Apple's supply chain for cases in 2021 (2 reports, 01 & 02). In August we reported that Wistron was hiring for its third iPhone plant.
Today we're learning that the Indian government has stated that "it was approving incentives under a federal plan to boost domestic smartphone production to 16 companies, including top Apple suppliers Foxconn, Wistron and Pegatron." The companies invested as requested and now the government is following-up on their promise.
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Two sources had told Reuters that these three companies have presented plans to invest a total of almost $900 million in India in the next five years to benefit from the scheme.
India’s smartphone industry has become a showpiece for Prime Minister Narendra Modi’s “Make In India” drive. The $6.65 billion incentive scheme is part of the government’s aim to make the country into an export and manufacturing hub.
Samsung, which runs the world’s biggest mobile phone manufacturing plant on the outskirts of New Delhi, also got approval, India’s tech ministry said in a statement. For more on this latest news, review the full Reuters report.