Recently, the central government has provided Rs 4,400 crore to tech companies like Apple and Samsung under the PLI scheme. But this money has not been donated to tech companies unnecessarily. Behind this is hidden the big plan of the government. According to the government, the common people will benefit considerably as a result of this project. And there will be big changes in the economy of the country. But what is this PLI scheme? And how will ordinary people benefit from this? And to get answers to all these questions, you have to read this report.
According to the government, the PLI scheme will create large-scale employment in India. Besides, it will also benefit the Indian economy. And in the near future, the price of the phone may come down relatively. According to a report by ET, the Indian government has earned Rs 42,897 crore over the last three years from the 6 percent GST increase on mobile phones, which is equal to the amount invested in the current PLI. Also, the scheme has already created several jobs and boosted the economy in India.
Apple’s three contact manufacturers namely, Foxconn, Wistron and Pegatron along with Samsung and domestic electronics company Dixon Technology have been given financial support of Rs 4,400 crore to manufacture smartphones under the Production Link Initiative i.e. PLI scheme in FY 2023.
Incidentally, smartphone maker Xiaomi did not benefit from the PLI scheme in the financial year 2021 as it failed to meet the targets set by the scheme as per the agreement. Also, Indian companies like Lava have also been deprived of the benefits of the PLI scheme as they have not met the targets of the scheme.
According to an ET report, four out of five global companies have succeeded in meeting PLI targets this financial year, with Apple and Samsung benefiting the most. And so far under this the government has given Rs 800 crore to Samsung and Rs 1700 to 2000 crore to its three manufacturing companies including Apple.
Note that due to PLI, mobile phone exports reached $10.5 billion from April to December 2023. And according to India Cellular and Electronics Association estimates, mobile phone exports could touch $14 to $15 billion by the end of the current financial year.
