In fact, as many as 22 companies, including the Austria-based AT&S and China-based Avary (printed circuit boards), Israel-based Neolync (actives), Germany’s Vitesco (power electronics sensors), Taiwanese firm Walsin (passives) and US-based Visicon (assembly, testing, marking, and packaging}, have invested in India in response to the government’s $6.6-billion PLI scheme.
Several Indian companies such as contract manufacturer Dixon, mobile phone makers Micromax and Lava and others like Padget, Optiemus and Sojo, have also decided to move part of their production lines from China to India.
The scheme is expected to increase the proportion of value addition for smartphones in India to 35-40 per cent from 15-20 per cent now. Thus, it will help India achieve its ambition of emerging as a major global smartphone manufacturing hub, a huge improvement from its current status as a major assembler of components imported from other countries, mainly China.
Following the success of this scheme, the government is rolling out similar PLI schemes to support domestic manufacturing in sectors such as textiles, batteries, solar power equipment, active pharmaceutical ingredients, air-conditioners, LED bulbs, medical devices, etc.
“We are quite hopeful that before end of this financial year (on March 31, 2021), all PLI schemes would have received cabinet approval and would be notified. We have done extensive stakeholder consultations with air-conditioner and LED players,” said Guruprasad Mohapatra, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT).