India has launched a $6.65 billion plan in which the cash will be directed into boosting production of consumer electronics in the second most populated country in the world. The plan is set to give first priority to five global manufacturers of smartphones.
The five smartphone producers will be given Production Linked Incentives (PLI) to expand domestic production or even establish production for those which don’t have production plants in the country.
While on a news conference India’s minister of technology Ravi Shankar Prasad said the PLI’s will include cash worth 4% to 6% of extra sales of goods made locally over five years whereby 2019 and 2020 will be used as the base years.
The minister further said the five companies will be revealed in the next two months as they first must meet some requirements in terms of investments and sales so as to be declared eligible.
Additionally, Minister Prasad said some other five Indian companies will selected for the PLI program. According to the minister, PLI plus other similar initiatives could help India produce smartphones and other consumer electronics worth 10 trillion rupees ($133 billion) by 2025.
India’s Prime Minister Narendra Modi declared improving the smartphone industry in the country is among his top agenda, his administration is engaging in a process to make India a smartphone export hub in a project dubbed ‘Make in India’.
The tech minister says the plans also include schemes to scale up productions of the consumer electronics in which pre-build plants will be offered to the manufacturers of the electronics to move in and start operations as soon as possible.
“We want the bridegrooms to come but we also want the entire wedding procession. A company coming to India should also bring the entire procession of its ancillaries,” added the minister.