- Apple’s top three manufacturer partners Foxconn, Wistron, and Pegatron to invest $900 million in the next five years to boost manufacturing in the country.
- It is unclear whether all of the investments will be targeted to boost manufacturing in the country.
Apple’s top three manufacturer partners Foxconn, Wistron, and Pegatron to invest $900 million (Rs 663 crore) in the next five years to India Smartphone Incentive Plan.
According to the reports, The investment will be made under the Production-Linked Incentive (PLI) Scheme that will benefit Apple in manufacturing its products in India.
The Production-Linked Incentive is a scheme launched by the IT Ministry to encourage foreign companies to manufacture their products in India. The scheme offers to boost the local/domestic manufacturing and attract large investments in mobile and other electronic device components, including Assembly, Testing, Marking, and Packaging (ATMP) units.
The investment in India will help Apple to set up its manufacturing hub in India. Currently, Apple is manufacturing iPhone SE at Foxconn’s manufacturing plant in Chennai.
Additionally, it is expected that the plan will create roughly 10,000 jobs in the country.
Furthermore, The investment will also help Apple to save its heavy duties and taxes that are levied while importing their products to India.
India’s $6.65 billion PLI scheme offers companies cash incentives on any increase in sales of locally-made smartphones over the next five years, compared with 2019-20 measures.
According to Reuters, Foxconn will invest $542 million (Rs 400 crore), While Wistron and Pegatron will invest close to $176 million (Rs 130 crore) and $162 million (Rs 120 crore), respectively, under the scheme.
Although it is unclear whether all of the investments will be targeted to boost Apple’s product manufacturing in the country, but the sources said, the major portion of the investment will be put in the manufacturing department.
Wistron, which assembles 200,000 second-generation iPhone SE per month in India, The company now plans to increase it to 400,000 per month by the end of this year.
Apple is now making a push to focus on the Indian market by expanding beyond countries like China. Apple has also committed to open its online store in various Indian cities. Earlier this week Apple launched its first online retail store in Mumbai city.