Samsung, Apple's contract manufacturers to get Rs. 4,400cr under PLI
Apple's three contract manufacturers, along with Samsung and local electronics company Dixon Technologies, are set to receive over Rs. 4,400 crore to meet production targets in FY23 under India's production-linked incentive (PLI) scheme for smartphones. However, the original planned outlay of Rs. 6,504 crore for FY24 won't be fully utilized as some companies haven't met their targets.
Incentives disbursed to companies that have exceeded their targets
The companies that surpass targets can claim additional PLI incentives from unclaimed amount resulting from firms that have failed to meet the targets. Among global firms, Rising Star, a smartphone contract manufacturer for Xiaomi, has missed targets since the PLI scheme began in FY21. Indian companies Lava and Optiemus Electronics, who haven't met their targets even once, are also unlikely to receive incentives. The government has released Rs. 2,500 crore under scheme with Rs. 500 crore going to Samsung.
PLI scheme has boosted mobile phone exports
Thanks to the PLI scheme, mobile phone exports reached $10.5B from April to December 2023. A few years ago, electronics ranked ninth in export categories, but since scheme's launch in 2021, it jumped to fifth place. The India Cellular and Electronics Association predicts mobile phone exports will reach $14-15 billion by the end of this fiscal year. With four out of five global firms having met targets in FY23, PLI amount disbursed in FY24 will be the highest so far.
