In a major boost to the telecom equipment markets, the Centre’s extension to the production-linked incentive (PLI) scheme on Monday is set to accelerate business growth for key manufacturers in the market.
Soon after the announcement made by Union finance minister Nirmala Sitharaman, Taiwanese electronics major Foxconn said the extension granted for achieving manufacturing targets under the production-linked incentive (PLI) scheme will help the company to accelerate its business and qualify for receiving incentives.
“We are delighted that the PLI scheme change in the base year has been extended by the Government of India in the light of a challenging year for all companies due to the pandemic situation. This thoughtful change will help us to accelerate our business and thereby achieve the qualifying revenue under the PLI Scheme,” Josh Foulger, Country Head and Managing Director, Rising Stars Mobile (A Foxconn Technology Group Company) said.
The Apple iPhone maker which is diversifying its operations outside of China and Taiwan has been approved by the government to qualify for PLI incentives by production via its two units- Hon Hai and Rising Stars.
Despite making timely investments, Foxconn was unable to meet the output target for the first year due to the Covid-19 pandemic outbreak and other global supply chain pressures. Under the revised PLI scheme the Centre is looking to make the country a global manufacturing hub with an export target for phones worth $100 billion over the next five years.
Out of this close to $40 billion worth of exports will come from Foxconn and rival iPhone maker Wistron alone. Currently, Apple sells iPhones worth $1.5 Bn in India, of which less than a third are locally manufactured.