Sunday, May 26, 2024
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Apple’s PLI boosts manufacturing

Apple’s iPhone Exports Boost India’s Mobile Export Figures under PLI Scheme

Introduction: The production-linked incentive (PLI) scheme introduced by the Indian government in 2020 has enabled major global smartphone manufacturers such as Apple and Samsung to establish their foothold in the country, and increase domestic production for global exports. Apple’s success in meeting its export targets for the fiscal year ending 2023 is expected to boost India’s mobile export figures by 236% to over 37,000 crore. With this, the total mobile exports from India during the current fiscal year is set to cross 80,000 crore, higher than the government’s estimate of `75,000 crore.

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Apple’s Success under PLI Scheme: Apple’s iPhone models are manufactured in India by its three contract manufacturers – Foxconn, Pegatron, and Wistron – all of which are in their second year of the five-year smartphone PLI scheme. Apple has exceeded its cumulative production targets – both domestic and exports – of `47,041 crore under the PLI scheme, and has expanded its exports in a phased manner. Apple has been successful in targeting consumers in some of the most sophisticated and developed markets, including the UK, Italy, France, West Asia, Japan, Germany, and Russia.

 

Expansion of Ecosystem in India: The PLI scheme has not only enabled Apple to boost its exports from India but has also resulted in the massive expansion of the Apple ecosystem in the country. Over the last 20 months since August 2021, the ecosystem in India has already contributed over 100,000 direct jobs.

Impact of PLI Scheme: The smartphone PLI scheme is considered the flagship scheme of the 14 PLI schemes introduced by the government, with a budgetary allocation of 40,995 crore over a five-year period between 2021-2026. The government has allocated approximately 2 trillion across the 14 schemes and an additional `76,000 crore for the semiconductor incentive scheme.

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The PLI scheme has been successful in increasing domestic production for global exports, with mobile exports from India already crossing the 75,000-crore mark during April-February, according to industry estimates. In February alone, smartphone exports exceeded 8,000 crore. South Korean manufacturer Samsung Electronics is another major global smartphone exporter under the scheme.

Conclusion:  Success under the PLI scheme is a testament to the Indian government’s commitment to promoting domestic manufacturing and increasing exports. The PLI scheme has not only enabled global smartphone manufacturers such as Apple and Samsung to establish their foothold in the country but has also resulted in the expansion of the ecosystem and the creation of numerous direct jobs. The success of the PLI scheme has surpassed the government’s initial estimates and is set to boost India’s mobile export figures significantly.

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