India To Export $100-Billion Mobile Phones

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Applications by iPhone contract makers Foxconn, Pegatron and Wistron as well as Samsung, Karbonn, Lava and Dixon
To export mobile phones worth around $100 billion from India have been cleared by the empowered group, Said people with knowledge of the matter.

The empowered committee has approved all applications estimated to export around $100 billion (Rs 7.3 lakh crore) worth mobile phones
Under the production linked incentive scheme (PLI) and
All the applications will be placed before the cabinet probably this week.
Members of the empowered committee include-
The Niti Aayog CEO along with
The secretaries of economic affairs, expenditure, revenue, the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT) and Directorate General of Foreign Trade (DGFT).

No. of applications

Five of the applicants are overseas ones,
Samsung, 2 units of Foxconn, Wistron and Pegatron.
Seven are Indian and
Lava, Dixon, Micromax, Padget Electronics, Sojo, Karbonn and Optiemus.
Another six are in the components manufacturing scheme.
Apple’s contract manufacturers and Samsung have submitted production estimates of phones worth $50 billion each in the next five years.

The PLI scheme, which aims to make India a manufacturing hub for smartphones, was notified in April.
It would give incentives of 4-6% to electronics companies which manufacture mobile phones and other electronic components such as-
Transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as micro electromechanical systems.
According to the scheme, companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6% on incremental sales of all such mobile phones made in India.
In the same category, companies which are owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.
The scheme, according to officials, will on one hand attract big foreign investment in the sector,
While also encouraging domestic mobile phone makers to expand their units and presence in India.

The total incentives over five years have been kept at Rs 40,951 crore.
Total incentive available to distribute for the first year is capped at Rs 5,334 crore.
For the second-year Rs 8,064 have been earmarked, and for the third year incentives are capped at8,425 crore.
This will is hiked for the fourth year to Rs 11,488 crore.
In the fifth and final year, 7,640 crore is the amount that will be distributed.

Apple’s contract manufacturers started producing its latest handset models, the iPhone 11 and iPhone SE, shortly after PLI scheme announced.
Meanwhile, Samsung, which now exports phones worth about $2.5 billion from India, is all set to ramp up its production.
Samsung exporting $2.5 billion out of India — of this, 97% was in the below $200 segment.
By putting this floor price of $200 for eligibility in the PLI scheme, we have incentivised them to make high-value phones in the country.
Now they will be vacating this space of less than Rs 15,000 factory price for Indian players to occupy.