- Companies in the electronic segments such as Apple and Samsung have shown interest in moving their production hub to India
- The companies are planning to diversify supply chains amid the ongoing COVID-19 pandemic and U.S-China trade war.
- Earlier this year, The Indian government had announced the Production Linked Incentive Scheme (PLI) a program for companies to scale up their domestic production.
According to the reports, 24 companies are planning to shift their production hub from China to India.
Companies in the electronic segment such as Apple and Samsung have shown interest in moving their production hub to India. While Samsung already having its world's largest mobile factory in Noida, India. Now, Samsung is planning for a big move for mobile production in India.
Furthermore, According to the Bloomberg report, Apple and Samsung are planning an investment of $1.5 billion to establish its production hub in India.
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Giant companies like Apple and Samsung are planning to diversify their supply chain from China to India amid ongoing COVID-19 pandemic and U.S-China trade war.
Moreover, To encourage foreign companies to set up their production hub in India, The Indian government introduced the PLI (Production Linked Incentive Scheme) an incentive program for the companies to boost domestic manufacturing and attract large investments in the mobile manufacturing segment.
The scheme PLI introduced by the Indian government extended an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined. Later on, This incentive program was also extended to other sectors including pharma, auto, textiles, and food processing under the program.
According to the report, The Indian government is expecting $153 billion production leads and nearly 1 million new direct and indirect jobs via this incentive program.
Further, Foxconn, Taiwanese Electronics Industry Company, is also planning to move its production hub from China to India. Foxconn had planned an investment of $1 billion in India to set up its production unit in Chennai.
In 2017, Samsung announced that they are launching the world's largest mobile factory in Noida, India. Samsung India also launched its ‘Make for the World’ initiative, whereby it aims to export mobile handsets and other electronic items produced in India, to overseas markets.
Samsung already made an investment of nearly Rs 5000 crores for its production hub in Noida, under the Uttar Pradesh government’s Mega Policy.
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