Apple has two manufacturing facilities in India and is reportedly planning to expand its production in the country. Now the company is expected to be joined by Samsung which is in the process of shifting a part of its smartphone production to India from Vietnam and other countries.
The news comes from The Economic Times, which reported that the South Korean brand plans to produce devices worth $40 billion (Rs 3 lakh crore) under the government’s Production Linked Incentive (PLI) scheme during the next five years. The report adds that locally produced phones costing above $200 (~Rs 15,000) will be exported.
Samsung plans big shift of smartphone production to India
Vietnam is the second-largest smartphone manufacturing hub after China. According to industry estimates, Samsung roughly produces 50 percent of its phones in Vietnam. Last year, the South Korean brand had shut down its last remaining factory in China. The report also added that it is shutting down production in its home country due to increasing labour costs.
In India, the company runs its largest manufacturing unit in Noida from where it also exports smartphones to other countries. The development to move its manufacturing operations to India marks Samsung’s move to avail the centre’s PIL scheme. Under PLI, electronic manufacturers are eligible for a 4 to 6 percent incentive of their incremental sales over the next 5 years.
According to the Union Minister Ravi Shankar Prasad, along with Samsung, around 22 companies including Apple’s Foxconn and Wistron had filed their applications with the government under PLI scheme. This is aimed at global manufacturers shifting their bases away from China.
After Apple, Samsung’s move to shift its production to India may boost the government’s ‘Make in India’ initiative. It remains to be seen if Samsung smartphones will become cheaper once the company starts making them in the country.