Manufacturing hub in India: After the production linked incentive program by India for manufacturers of electronic components. Prime minister Narendra Modi introduced this scheme in March for firms who are eligible to pay 4%-6% of their incremental sales in over the next five years.
With this many huge manufacturers of Samsung and Apple, smartphone devices have applied for this program. Around 2 dozen companies plan to set up their manufacturing hub in India said IT minister Ravi Shankar Prasad.
Manufacturing hub in India – These companies include Apple’s Foxconn, hon hai rising star, Wistron, and Pegatron along with Samsun Pixon and Samsung. iPhone 11 will also soon be manufactured with the original iPhone SE and iPhone XR in Chennai. Samsung is also looking forward to moving its production line from Vietnam to India, because of cheap labor.
They will produce devices worth around $40 billion which are to supplied worldwide. Samsung also has it’s biggest production line here in Noida. Vietnam is the second-largest exporter of smartphones after China followed by Cambodia, Myanmar, Bangladesh, and Thailand, according to a survey by Standard Chartered Plc.
These companies will provide 3 lakh direct jobs and 9 lakh indirect jobs for our country. They will manufacturer smartphone devices valued around Rs. 11 lakh crores in the coming 5 years.
This shift in production lines has been lead to India because of PLI (production linked incentive scheme) as well as a trade war between the US and China along with the corona pandemic. This will also reduce imports and India will immerge as a production hub for exports.
Kaushik Das, chief India economist at Deutsche Bank AG in Mumbai said: “These programs are aimed at increasing India’s manufacturing share in the gross domestic product.” India also plans to extend such incentives to various fields such as textile, automobiles, and food processing.