Three major Apple Inc. contract manufacturers in India – Foxconn, Wistron (Tata-owned), and Pegatron – are set to receive incentives exceeding Rs 4,400 crore for achieving targets in the fiscal year 2023 under the government’s production-linked incentive (PLI) scheme for smartphones. Additionally, South Korea’s Samsung and Indian company Dixon Technologies will also share a portion of the Rs 4,400 crore incentives.
As per reports from The Economic Times, some of the 10 selected companies have not met the set targets, leading to an underutilization of the originally planned outlay of Rs 6,504 crore for the fiscal year 2024. The incentives are granted a year after the companies successfully achieve their targets, with the possibility of additional benefits for those exceeding expectations.
Rising Star (Bharat FIH), a smartphone contract manufacturer for Xiaomi, has faced challenges in meeting targets since the initiation of the PLI scheme in FY21. Similarly, Indian companies Lava and Optiemus Electronics have struggled to meet targets since the scheme’s inception.
The government has already released approximately Rs 2,500 crore under the PLI scheme. Notably, Samsung received Rs 500 crore, while Foxconn, Wistron, Pegatron, and Dixon received amounts ranging from Rs 1,700 to Rs 2,000 crore. Despite missing targets for the second year, Samsung has now claimed to have met the targets for the third year.
The PLI scheme has significantly contributed to the growth of mobile phone exports, reaching $10.5 billion in the April-December 2023 period. The scheme aims to strengthen the manufacturing ecosystem in India and boost the country’s position as a global hub for smartphone production.
