Under the flagship scheme of Make in India, the government has been working on Rs 42,000 crore plan to boost local manufacturing of mobile phones and ramp up production.
Even as China struggles to cope with rising demand on the account of shutting down operations due to Coronavirus outbreak, the scheme aims at integrating India into global supply chain.
According to news source, the production-linked incentive scheme will benefit high end mobile manufacturers and domestic makers the most.
According to the report, the scheme, which is being heralded by the Ministry of Electronics and Information Technology (MeitY), will help global giants like Apple and Samsung’s high end offerings.
The scheme will benefit contract manufacturers like Foxconn and Wistron that are already manufacturing in India. Domestic Companies like Lava and Micromax will benefit the most from this scheme.
“The electronics hardware manufacturing sector faces the lack of a level-playing field vis-à-vis competing nations… (and) suffers from a disability of 8.5% to 11% on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development,” as per the quoted source in the IT ministry.