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Nine out of Eleven component manufactures of Apple convinced to shift their plants from China to India: Union minister Ravi Shankar Prasad

Union Minister Ravi Shankar Prasad said that even during the COVID-19 pandemic period, the government was able to bring nine of their operating units along with component makers from China to India.

Union Minister for IT and Communications Ravi Shankar Prasad on Thursday said that the Modi government was able to convince nine of the eleven component-makers of Apple Inc to move away from China to set up their plants in India.

Speaking at the inaugural session of the 23rd edition of the Bengaluru Tech Summit held virtually, Union Minister Ravi Shankar Prasad said that even during the COVID-19 pandemic period, the government was able to bring nine of their operating units along with component makers from China to India. “During Covid-19, about 9 of 11 component-makers of Apple have shifted their units from China to India. These huge changes, especially with the Digital India mission, has led to global inclusion with several home-grown elements,” the minister said.

The Union Minister, while addressing the summit, also pointed out to Karnataka Chief Minister BS Yediyurappa that Apple has chosen Bengaluru for manufacturing iPhones.

“I am pleased to inform BS Yediyurappa that Apple has chosen your city Bengaluru to manufacture their quality phones for India and abroad,” Ravi Shankar Prasad added.  

Apple’s supplier Wistron has a manufacturing facility in Kolar near Bengaluru where it has been assembling Apple devices. Wistron may expand its operations at the Bengaluru plant under the Union Government’s production-linked incentive scheme (PLI) and is expected to begin assembling iPhone 12. 

In July, Taiwanese electronics manufacturer Foxconn, one of the major component suppliers to Apple Inc had announced to invest up to $1 billion at the Sriperumbudur plant in Tamil Nadu.

Last month the ministry had approved proposals by Samsung, Foxconn, Rising Star, Wistron and Pegatron were filing applications under the government’s PLI scheme. Apart from these foreign companies, proposals of Indian companies like Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics were also approved. The scheme will lead to a total production of more than Rs 10.5 lakh crores over the next five years, in which the share of mobile phones will be Rs 9 lakh crores. It is expected that over 60% of this production will be exported. PLI scheme, one of the flagship initiatives of the Modi government aims to increase foreign investment in the country by offering companies incentives on incremental sales from products manufactured in domestic units.

Global mobile manufacturers to invest Rs 10 lakh crore in India

Highlighting the country’s tech-prowess, the Union Minister said that the Modi government was successful in bringing Production-Linked Incentive (PLI) scheme, which has attracted major global and Indian mobile phone manufacturers. These companies have now invested close to Rs 11,000-lakh crore in India and have committed to manufacture phones worth ₹10.50-lakh crore, Minister Prasad said.

The Union Minister also pointed out that global manufacturing world was looking towards alternative destinations and are ready to invest in the country. Prasad said even during the pandemic the communications sector witnessed a growth of over seven per cent and also received significant investments from major global companies.

Prasad said that out of the nearly Rs 11 lakh crore proposed investment by major global companies in the next five years to manufacture mobiles and components, Rs seven lakh crore worth of products will be only for exports.

Bengaluru Tech Summit is organised annually by the Karnataka government along with Karnataka Innovation and Technology Society, and Software Technology Parks of India.

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