Foxconn India and Padget Electronics to receive PLI incentives

The Empowered Committee headed by CEO, NITI Aayog, Parmeswaran Iyer has approved incentives for two companies—one a domestic company and the other a global company—for mobile manufacturing under the Production-Linked Incentive (PLI) scheme for the Large-Scale Electronics Manufacturing (LSEM) sector.

M/s Foxconn Hon Hai Technology India Mega Development Pvt. Ltd is the first global company that has been approved under the target segment ‘Mobile Phones’ (Category: Invoice Value Rs 15,000 and Above) to receive incentive under mobile manufacturing for the period 1 August 2021–31 March 2022 based on its incremental investments and sales figures. The incentive amount approved is Rs 357.17 crore.

Foxconn Hon Hai Technology India Mega Development Private Limited (or Foxconn India), owned by Hon Hai/Foxconn Technology Group is part of the Foxconn Group, which is the world’s No. 1 manufacturer/assembler of mobile phones. Foxconn India is a Taiwanese multinational electronics contract manufacturer with its headquarters in Tucheng, New Taipei City.

M/s Padget Electronics Pvt. Ltd, a domestic company, has been approved by the Empowered Committee to receive incentive under mobile manufacturing for the quarter January–March 2022 based on its incremental investments and sales figures under the target segment ‘Mobile Phones’ (Category-Domestic Companies). The incentive amount approved is Rs 58.29 crore.

Padget Electronics Pvt. Ltd is a 100% subsidiary of Dixon Technologies Pvt. Ltd and has manufacturing facilities in Noida, Uttar Pradesh. Padget Electronics had already received an amount of Rs 53.28 crore under the PLI scheme for Large-Scale Electronics Manufacturing for the period August–December 2021 based on its incremental investments and sales figures.

The proposals for disbursement of incentives, presented by Ministry of Electronics and IT, were considered by the Empowered Committee, comprising NITI Aayog CEO Param Iyer, DPIIT Secretary Anurag Jain, MeitY Secretary Alkesh Kumar Sharma, and other members of the Empowered Committee.

The PLI scheme for Large-Scale Electronics Manufacturing, under MeitY is advancing towards making India a competitive destination for electronics manufacturing and providing a boost to Atmanirbhar Bharat while creating more global champions in this sector.

As of September 2022, the PLI scheme for LSEM has attracted investment of Rs 4,784 crore, and led to total production of Rs 2,03,952 crore, including exports of Rs 80,769 Crore. The scheme has also generated employment of 40,916. Electronics manufacturing is expected to rise to USD 300 billion by 2025-26.

As a result of government initiatives and industry’s efforts, India has made rapid advances in the past five years in the field of electronics manufacturing. The production of mobile phones has risen from about 6 crore in 2014-15 to approximately 31 crore in 2021-22.  The export of mobile phones has also seen a sharp increase. India exported Rs 45,000 crore worth of mobile phones in FY 2021-22 and during the current year up to November 2022, mobile phone exports have already crossed Rs 40,000 crore, which is more than double the exports made during the same period last year.

The PLI for Large-Scale Electronics Manufacturing sector has attracted leading global players, including Foxconn, Samsung, Pegatron, Rising Star and Wistron while leading domestic companies, including Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics, have also participated in this scheme.