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In a bid to encourage the production of MacBooks and iPads in India, the Centre is reportedly planning to increase the outlay of the production-linked incentive (PLI) scheme for IT hardware manufacturing from Rs 7,350 crore to Rs 20,000 crore, a report by the Times of India (TOI) said.
“We have tasted success with the iPhone production as Apple’s all the top manufacturers – Foxconn, Wistron and Pegatron – are now making smartphones worth billions of dollars in the country. The next step for us is to get the production of MacBook and other products such as iPad in India,” a source told TOI.
The proposal to enhance the outlay has already been sent by the IT ministry to finance and other ministries. IT ministry is the nodal ministry for hardware manufacturing in India.
Under the current PLI scheme, the Centre provides incentive support of 1-4 per cent over four years to the company. After the changes, this may rise to 5 per cent. Laptops also do not attract any import duty.
“We feel the earlier scheme was not sufficient to meet the disability that companies would have if they manufactured in India. Thus, with an enhanced incentive plan and a larger fund outlay, the new scheme will surely prompt companies to invest and also make in India,” TOI‘s source added.
The company might also consider the option of a joint venture (JV) between Indian and Chinese companies where control is in the hands of the Indian firm. The tensions between the two countries, however, have made it difficult for Apple to strike a balance in production.
Apart from Apple, the report added, it would be crucial to attract other companies like Dell and HP to achieve the status of “global manufacturing hub”.
“These are big companies that need to service markets across the world. With the eco-system gradually building in India after the PLI schemes, we are confident that an enhanced and friendlier scheme will bear results in the IT hardware,” a person aware of the developments told TOI.
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