Apple may expand India operations beyond iPhones: Ashwini Vaishnaw
What's the story
Apple may expand its manufacturing operations in India beyond iPhones, Union Electronics and IT Minister Ashwini Vaishnaw said. This comes as part of the government's efforts to promote localization and design capabilities in the country. The five-year Mobile Phone Manufacturing Scheme (MPMS) aims to boost global competitiveness, strengthen domestic supply chains, and enhance value addition.
Scheme details
MPMS has 2 segments
The MPMS has two segments: incentives for mobile-phone manufacturing and support for Indian brands.
The scheme intends to boost global competitiveness, strengthen domestic supply chains, and enhance value addition.
Vaishnaw emphasized the need to build design capabilities in India as part of this initiative.
The Indian government is also working with three potential Indian smartphone players to develop competitive designs within 10-14 months.
IP emphasis
Eligibility criteria for Indian brands
The government wants domestic manufacturers to develop their own intellectual property, product design, and technology capabilities.
An Indian brand must be incorporated in India, hold its IP and trademark here, have management control with Indian citizens, have more than 51% Indian citizen shareholding, and maintain in-house R&D and design capabilities in India.
The scheme also offers a 3% incentive on R&D programs of companies.
Localization push
Incentives for domestic sourcing of key components
The MPMS also incentivizes manufacturers for domestic sourcing of key components like display modules, camera modules, enclosures, batteries, and USB cables.
This is part of a larger push to localize the mobile-phone supply chain.
The government hopes that this scheme will help both global manufacturers and domestic companies ramp up production and sourcing within India.