New Delhi, NFAPost: Wistron, a leading Taiwanese contract manufacturere for Apple, has exceeded its investment obligation in India in just eight months, although the government’s production-linked investment (PLI) scheme allowed it to complete the investment in four years.
The government introduced Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing notified on 1st April, 2020, extends an incentive of 4% to 6% on incremental sales (over the base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
Between August 2020 and end March 2021, Wistron made an investment of Rs 1255 crore. It is 25% more than the total investment it had committed to the government. Under the PLI scheme for mobile devices, the government had stipulated that each of the five participating global companies needed to invest Rs 250 crore.
While giving approval of eligible applicants under the PLI Scheme, Union Minister for Electronics & IT, Communications, Law and Justice Ravi Shankar Prasad said that PLI scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers.
“Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination and this resonates strongly with Prime Minister’s clarion call of AtmaNirbhar Bharat – a self-reliant India. Minister further said that “we are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” said Union Minister for Electronics & IT, Communications, Law and Justice Ravi Shankar Prasad.
The international mobile phone manufacturing companies that are approved under Mobile Phone (Invoice Value Rs 15,000 and above) Segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.
Out of these, 3 companies namely Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue of mobile phones and this scheme is expected to increase their manufacturing base manifold in the country.
(The story is based on Business Standard input)
