Photograph by Rajwant Rawat
On March 10, the $274 billion, Cupertino, California-based Apple Inc. announced it is starting production of the 5G-compatible iPhone 12 in India. It appeared like a routine announcement. After all, Apple has been assembling older generation iPhones in India through contract manufacturers since 2017. It wasn t.
It might have been a small step for Apple but was a giant leap for Indian manufacturing. India s new Production Linked Incentive (PLI) Scheme to reduce import dependence and promote local manufacturing had lured three of Apple s Taiwanese original equipment manufacturers - Foxconnn Hon Hai, Wistron and Pegatron - to pump in millions of dollars to expand Indian facilities. They will move a step up from assembling imported parts here to making or sourcing more components locally. Like Apple, about 70 firms have shown interest in availing the PLI Scheme to set up manufacturing facilities in three key sectors: mobile and electronic components; pharma
How domestic and foreign companies are upbeat about PLI scheme to make India a manufacturing powerhouse
Share
Synopsis
The central government scheme also partly addresses the “disability gap” that India has against other manufacturing destinations from where goods are imported, say experts who track manufacturing companies.
Make in India
Computers to lightbulbs, air conditioners to washing machines, phones to medicines, factories in India don’t make the whole product across several categories. What goes for manufacturing is mostly assembly of imported components. In devices where the parts’ ecosystem has developed, the component that makes them smart is imported like in bulbs or phones. Now, a combination of factors is converging to change that.