In order to ramp up production and boost the local manufacturing market of mobile phones under the flagship scheme of Make In India campaign, the government is working on production-linked incentive scheme of Rs.42,000 crore. This scheme is expected to benefit high end mobile manufacturers and domestic makers the most according to a report by the Times Of India.
Due to the corona virus outbreak, China is struggling to cope up with the rising demand on shutting down its operations, thereby making this scheme to integrate India into the global supply chain. According to the report, it has also been revealed that the scheme which has not been announced yet will help the global players like Apple and Samsung. The Indian manufacturers’ dependency on China might also be lowered and boost the local production of mobile phones.
The report also quoted a source in the IT ministry saying “The electronics hardware manufacturing sector faces the lack of a level-playing field vis-à-vis competing nations… (and) suffers from a disability of 8.5 per cent to 11% on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development.”
The scheme will benefit contract manufacturers like Foxconn and Wistron that are already manufacturing in India. Domestic Companies like Lava and Micromax will benefit the most from this scheme.