India Boosts Tech Hardware Manufacturing with Subsidies for Apple Supplier Foxconn and Lenovo
New Delhi has given the green light to subsidies for 27 tech hardware manufacturers, including global giants such as Foxconn and Lenovo, as part of India’s Production Linked Incentive (PLI) scheme. The move aims to strengthen India’s position as a major player in the global electronics supply chain and boost domestic manufacturing.
The approved applications cover subsidies for domestic assembly of desktop and laptop personal computers, tablets, and other tech hardware, with companies like Dell, HP, and AsusTek Computer also benefiting from the scheme. According to India’s government statement, 23 out of the 27 approved applicants are ready to commence manufacturing immediately, while the remaining four will begin production within the next 90 days.
The PLI initiative, which is aligned with Prime Minister Narendra Modi’s Make in India campaign, aims to attract global manufacturers and reduce India’s reliance on imports from China. It not only creates employment opportunities but also tightens scrutiny of Chinese companies operating in the Indian market.
Under the PLI scheme, the approved companies are expected to create 50,000 direct jobs and around 150,000 indirect jobs. The estimated value of information technology hardware production is projected to reach $42 billion. This follows a previous phase of the PLI scheme, which provided incentives for smartphone manufacturing, including Apple supplier Foxconn.
The approval for Lenovo, the world’s largest PC vendor, is particularly noteworthy considering the challenges faced by other Chinese tech firms in India amidst rising geopolitical tensions between the two countries. Vivo, a Chinese smartphone maker, had four of its executives arrested in India for alleged visa violations and tax evasion, while Xiaomi has been involved in a legal battle over seized funds due to foreign exchange violations.
Although some companies, like Luxshare Precision Industry Co, a major Apple supplier, have expanded manufacturing outside China, Luxshare is focused on Vietnam rather than India. Luxshare recently secured approval for an investment of $330 million in a plant in Vietnam’s Bac Giang province.
By approving subsidies for leading tech hardware manufacturers, India aims to emerge as a prominent hub for hi-tech manufacturing, diversify production from China, and reinforce its economic transformation. It is a significant step for India in its quest to become a prominent participant in the global technology market while reducing its dependence on imports and strengthening its domestic manufacturing capabilities.
In conclusion, the approval of subsidies for Apple supplier Foxconn, Lenovo, and other tech hardware manufacturers under India’s PLI scheme represents a significant boost for the country’s domestic manufacturing sector. With the potential to create thousands of jobs, attract global players, and reduce reliance on imports, India is poised to make its mark as a major player in the global electronics supply chain.
