Last Update: January 18, 2023, 4:55 pm IST
India is Samsung’s largest smartphone market outside South Korea by volume.
Samsung Electronics is seeking around Rs 900 crore from the government as manufacturing incentives, while the Center is ready to give only Rs 165 crore unless the firm provides more information and documents to support its claim.
Samsung Electronics is seeking around Rs 900 crore from the government as manufacturing incentive. However, the Center is only willing to pay around Rs 165 crore unless the smartphone giant provides more information and documents to support its claim. Bloomberg quoted the people who asked not to be identified.
Incentives are a key component in Prime Minister Narendra Modi’s campaign to make India An electronics manufacturing center.
A Samsung spokesperson said via email that the company is in discussion with the government on the stimulus payment. Bloomberg Report good. It added that the phone maker is working with various stakeholders to make the PLI program a success.
The central government had announced $6.7 billion in production-linked incentives (PLIs) in 2020, promising cash to companies on the sale of locally manufactured smartphones. The production of mobile phones has been increased from about 60 million in 2014-15 to about 310 million in 2021-22.
During the current year, till November 2022, the export of mobile phones has crossed Rs 40,000 crore. According to government data, this is more than double the exports made during the same period last year.
The Production Linked Incentive (PLI) scheme for large scale electronics manufacturing was notified on April 1, 2020, under which an incentive of 4 per cent to 6 per cent would be given on incremental sales for a period of five years beyond the base year. The government had selected 16 proposals under the scheme, involving an incentive outlay of Rs 36,440 crore from Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.
India is Samsung’s biggest smartphone market outside South Korea and is crucial to its growth. The company, which once operated what was said to be the world’s largest phone factory on the outskirts of New Delhi, has exported devices worth about $3 billion from India by March 2022.
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