Smartphone Subsidy Scheme: The Indian government is preparing a new incentive scheme to promote smartphone manufacturing. According to reports, big companies like Apple and Samsung can get special benefits from this scheme. Under the proposed policy, incentives will be given to those companies which export more smartphones from India and manufacture more and more components used in the phones in the country.
New policy can replace the existing PLI scheme
The current Production-Linked Incentive (PLI) scheme of the government is going to end on March 31. The main objective of this scheme was to increase local production of smartphones in India. Now the focus may change slightly in the new plan that is being prepared. The next phase will not be limited to production only but companies will be encouraged to export more and add more value in India itself.
Effort to make India a global export hub
Government officials believe that the first phase of the plan was successful to a great extent. Today, most of the smartphones sold in India are being manufactured within the country. Now the next goal of the government is that India should not only be a phone manufacturing country for the domestic market but can also become a big export hub for the global market. In the new scheme, companies can get subsidy based on the number of smartphones sent abroad.
Apple’s growing role in India
Apple’s role in India’s electronics industry has increased rapidly in the last few years. iPhone assembling companies hold a major share in the country’s smartphone exports. For this reason, India is progressing rapidly in the matter of mobile phone exports. It has also been said in some reports that in the coming time, most of the iPhones made for America can be manufactured in India only.
You can get more benefits on more local parts
An important condition of the new policy may also be that most of the components used in smartphones should be made in India. If the camera module, display assembly or other important components of a phone are manufactured in the country, then that company is likely to get more incentives. This means that those companies which will strengthen the local supply chain and also increase exports can get the most benefits.
Other brands may also get export opportunity
The government wants brands like Oppo, Vivo and Xiaomi to export more smartphones from India. Currently, many companies sell phones made in India mainly in the domestic market. Through the new policy, they can be motivated to increase production from India for the global market also.
Strengthening the supply chain is still a challenge
Although smartphone assembly in India has grown rapidly, many expensive and critical components are still imported from abroad. Many important parts have to be procured especially from China, South Korea and Taiwan. This new initiative of the government is considered to be a part of the Make in India campaign. Its purpose is not just to assemble phones but to strengthen the entire electronics ecosystem. If this plan is successful, then in the coming time India can play an even more important role in the global smartphone supply chain.
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