What you need to know
- Three Apple manufacturers will receive incentives for making Apple products in India.
- Foxconn, Wistron, and Pegatron all stand to benefit from incentives of 4-6% on incremental sales.
- The trio has committed $900 million in investments in the country over the next five years.
Apple's three main suppliers, Foxconn, Wistron, and Pegatron will receive incentives of between 4-6% of sales for making smartphones in India, the Indian government has confirmed.
In a press release Tuesday the government stated:
Ministry of Electronics and Information and Technology (MeitY) has approved 16 eligible applicants under the PLI Scheme. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing notified on 1st April, 2020, extends an incentive of 4% to 6% on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (FY2019-20).
Union Minister for Electronics & IT, Communications, Law and Justice, Shri Ravi Shankar Prasad, said the scheme had been a huge success in garnering applications to make goods in the country. Several international mobile phone manufacturers will receive incentives of between 4-6% on incremental sales, including Samsung, Foxconn, Wistron, and Pegatron.
The latter trio has committed $900 million in investments in India over the next five years, as Apple continues to push its suppliers to help diversify its manufacturing base.
Apple continues to invest in India, recently signing its biggest-ever real estate deal in the country for an office lease in Bengaluru.
Apple also recently opened its online store in the country, selling products to customers in the nation directly for the first time. Earlier this year, it emerged that Apple was making the iPhone 11 in the country for local distribution, the first time a flagship iPhone has been made outside of China.