India exports $100 billion mobile phones according to the news by the government. This is important news that comes from the Mobile manufacturing sector empowered panel appointed by the Indian government, permission to allow a $100 billion mobile can export.
The iPhone manufacturer or contract makers like Foxon, Pegatron, Wistron, these manufacturer companies make a component for Apple, Samsung, Karbon, Lava & Dixon, etc. They export $100 billion mobile phones from India to all over the country which has been cleared by an empowered group.
Information technology(IT) minister Ravi Shankar Prasad retweet that the empowered committee has approved all export proposals from big India manufacturers to export a billion mobile phones.
The empowered committee includes NitiAyog CEO Amitabh Kanchi along with secretaries of economic affairs, Minister of Electronics and Information technology, Directorate General of Foreign Trade, etc.
The government brings a PLI (production linked Incentive) scheme in the past month, under this scheme Manufacturer may take benefits from the government. Many manufacturer companies submit their applications to the government.
Application estimation to export around $100 billion mobile phones worth Rs 7.3lakh core. It would be exported in five years. The empowered committee clearance that order to export phone to other countries,
These companies have approval by the Indian government, five of the overseas company are Samsung, units of Foxconn, Wistron and Pegatron, and seven Indian companies such a Lava, Dixon, Micromax, Padget electronics, Sojo, Karbonn, Optiemus.
Only Apple and Samsung contract manufacturers have submitted their production around $50 billion for the next five years. In India, only Apple and Samsung will make their production worth $50billion in the next five years. So evaluation maybe half of it consumes in domestic and half of the export to other countries in the future.
PLI Scheme
PLI scheme basically a Production Linked Incentive which aims to make India a manufacturing hub for smartphones. This was notified in April by the Indian Government. The government would give a 4-6% incentive to electronics companies include mobile and electronic components like the transistor, diode, capacitors, etc
According to the scheme incentive based on some demand, If companies make a mobile phone to sell under 15,000 or more it would get a 6% incentive on sale for mobile phones to make in India.
The government give an appreciation for their material which used on manufacturing the phones and give a positive appraisal to other manufacturer companies comes & make business in India
In a similar category, companies owned by India also get a 6% incentive or 200 crores for making mobile phones in the next four years. This is also a good initiative by the government to appreciate and enhance the Indian manufacturer under the "Atam Nirbhar Bharat".
Incentive distributed in the next five Years according to the given estimation.
. Incentives available to distribute marked at 5,344crore for the first year.
. Incentives available to distribute for the second year may be at Rs8,064crore.
. Incentives would be availble to distribute for third year caped at Rs 8,425crore
. Incentives would be availble to distribute for third year caped at Rs 8,425crore.
It may be a hike in 4year to Rs 11,488 and 5 years will be distributed cost Rs 7,640 crore.
This scheme attracts the big foreign manufacturer will come to invest in India in these sectors and also support to enhance domestic mobile phone makers & their presence in India.
Benefits Under Scheme
The apple manufacturer has already started producing the latest mobile phones like I phone 11 and I phone SE when the scheme was announced. Meanwhile, Apple may be a minor change in the cost price. So, it could be a benefit for the Indian users.
In earlier, Samsung was exporting $2.5 billion out of India, which was profit below $200. But under the latest PLI scheme if Samsung makes phones above 15,000 prices then the Indian government gives a high incentive than earlier. Now Samsung makes a large production in high-value phones in India under the benefits of PLI.
Samsung shifts its production lower cost to high-cost phones, it will be profit to the Indian manufacturer to enhance their production. This is a win-win situation for Both domestic and foreign manufacturers. Let's see in future India will export $100 billion or not.
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