2024-09-06 08:32:28
Mobile manufacturers in India are having a great time. The government is bringing in various schemes to attract foreign companies to India. Recently, the Production Link Scheme (PLI) was introduced and due to this, many foreign companies started making their smartphones in India. This included many Chinese companies including Apple, Samsung. The special thing was that during this time, many Chinese companies which were making smartphones in China also entered India. Foxconn is mainly included in this.
Now how have the companies benefited from this and the special thing is how has India benefited from this. This also matters a lot. Today we are going to tell you about all the things. This is going to help you a lot. It will also help you understand the whole mathematics. So let’s start-
Government gave a gift-
The government has said that companies that have completed production, sales, export targets will be given the benefit of incentives. This gift is being given to the companies that have completed this task under the Production-Linked Scheme (PLI). A senior official told ET that companies that have completed their targets will be given additional incentives by the government.
What is PLI scheme-
This scheme was introduced on 1 April 2020 and it was introduced for large-scale electronics manufacturers. Under this, incentives up to 4-6% can be given to those who meet the production target. This is the reason why big companies want their smartphone production to be done in India itself. Because this saves a lot of production cost and users also get direct benefit from it. Along with this, companies are also able to make more profits.
Who got the permission-
32 companies were approved by the government for mobile phone manufacturing. Seven were kept in the greenfield project and 25 in the brownfield project. After matching the demand, companies can ask for incentives after 1 year. That is, after completing their target, companies have to wait for 1 year. After this they can demand incentives. After completing the target, companies get 6% incentive for the first 2 years. In the third year, 5 percent incentive is given and in the fourth year, 4 percent incentive is given.
Google Pixel also made in India-
Google Pixel 9 has been launched recently, but you will be surprised to know that the production of Google Pixel has started in India. IT Minister Ashwini Vaishnav himself shared this information. This is a matter of pride for India because now the production of every smartphone has started in India. This is the reason why the government itself is insisting on calling such companies to India so that production in India can be accelerated.
Loss to China-
China has suffered a lot due to this whole process. Because most of the companies are now turning towards India. Samsung has even set up its manufacturing plant in India. In such a situation, users are taking this decision very positively. Also, there are many Chinese companies that want to set up a plant in India and do manufacturing, so this proves to be a very good option for them too.