The Indian government’s attempt to give China a business setback continues to blow China Now, 24 companies that are willing to wind up their business with China are preparing to set up their mobile phone production factory in India.
Rising trade tensions between the US and China and corona virus infection make companies want to diversify their supply chains. That is why these companies are exploring the options of supply chains outside China.
$1.5 billion investment pledged
According to Bloomberg, many assembly partners from giants like Samsung and Apple want to come to India. These companies have pledged $1.5 billion (about Rs 11,222 crore) to set up mobile phone factories in India.
Earlier, the companies that were going to cover their business from China were also thinking of turning to Vietnam, Cambodia, Myanmar, Bangladesh and Thailand, but India has now promptly inspired these companies to come.
Invest billions of dollars and employ millions
The Government of India believes that its Product Linked Incentive Scheme (PLI) can produce $153 billion of electronic goods in the country and provide direct or indirect employment to 1 million people.
In March this year, the government launched the scheme to promote manufacturing of mobile phones and certain electronic components in the country. It provides an incentive of up to 6 per cent on such items made in India. The same incentive was later given to several other sectors.
US company Apple is expanding its manufacturing capacity in India. Apple’s supplier Foxconn is also planning a $1 billion investment in India.