Union telecom and IT minister Ravi Shankar Prasad has announced that as many as 22 domestic and international firms have lined up with proposals for mobile phones production worth Rs 11 trillion , which have potential to create direct and indirect jobs for around 1.2 million people over the next five years.
"Applications received under the PLI scheme with cumulative investment commitments worth Rs 11,000 crore, total production of mobile phones at Rs 11.50 trillion with 60 per cent production reserved for exports, generation of 300,000 direct jobs...considered to be an extraordinary feat for the government's commitments towards Make in India and Aatmanirbhar Bharat objectives," ICEA Chairman Pankaj Mohindroo said in a statement.
He said that enhancing domestic value addition in the production locally to grow to 3540 per cent from the current 1520 per cent is also a major move towards creating self-reliant India.
"These were conservative numbers and the industry will surpass these by 2-2.5 times," Mohindroo said.
At present mobile phone production in the country is estimated to be over Rs 2 trillion per annum, employing around 500,000-600,000 people.
Prasad said that a total application under the PLI scheme has come from various countries including Taiwan, South Korea, Germany, Austria, etc.
"The benchmark for international companies was that they make mobile phones priced at or above Rs 15,000. International companies that have applied are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," Prasad said.
Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones.
In terms of revenue, Apple accounts for 37 per cent and Samsung 22 per cent for global sales of mobile phones and the PLI scheme is expected to increase their manufacturing base manifold in the country, an official statement issued by the Ministry of Electronics and IT (Meity) said.
The minister further said these companies will make thousands of crores investments based on the approval of their proposal
The companies that have applied for components production of around Rs 45,000 crore include AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, Vitesco and Neolync.
The government notified production-linked incentive scheme for large scale electronics manufacturing, the scheme for promotion of manufacturing of electronic components and semiconductors, and the modified electronics manufacturing clusters (EMC 2.0) scheme.
The government expects to attract Rs 1 trillion investment in the sector and sees a target manufacturing revenue potential of Rs 10 trillion by 2025.
The fresh proposals have exceeded the government's manufacturing revenue target but the final outcome will depend on the decision of the screening committee that will select projects eligible for incentives.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.