Foxconn, Wistron and Pegatron Commit $900 Million For India: Report

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All the three contract manufacturers are suppliers of Apple. The electronics manufacturing industry in India stood at Rs 4,58,000 crore in 2018

Foxconn, Wistron and Pegatron plan to invest Rs 4,000 crore, Rs 1,300 crore and Rs 1,200 crore, in India, respectively. First reported by Reuters, these investments might be due to the recent PLI scheme announced by the government of India.

The report adds that these investments are being done to boost manufacturing of Apple products in the country. While Foxconn and Wistron are manufacturing iPhones in India, Pegatron has recently set up a unit in the country to start India operations.

All three have applied for PLI scheme

All the three contract manufacturers have applied for the government of India’s PLI schemes. It is to be noted here that the scheme offers four to six per cent incentives for manufacturing electronic and mobile devices domestically in the country.

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Interestingly, India-headquartered manufacturers like Dixon and Lava have also applied to the scheme. According to a recent announcement made by the Ministry of Electronics and Information Technology (MeitY), foreign manufacturers have proposed production worth over Rs 9,00,000 crore. The domestic manufacturers, on the other hand, have proposed production worth about Rs 2,00,000 crore.

India exported smartphone components worth Rs 56,039 crore during 2019-20. Out of the total amount, smartphone components worth Rs 25,441 crore were exported from China. Sanjay Dhotre, minister of State for Communications and Electronics and IT, revealed these numbers in a written reply in Rajya Sabha.

Dhotre had also pointed towards the steps that the government is taking to reduce India’s dependence on a single source for obtaining electronics and components. Dhotre noted that right steps are being taken to encourage local electronics manufacturing in India.

The total electronic component imports in India during 2019-20 was Rs 1,15,558 crore, out of which, imports from China were worth Rs 42,983 crore. India, as Dhotre said, is not planning to ban the import of electronics or electronic components from China.

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