Samsung will join India from Vietnam; 3.7 lakh crore worth of smartphones to be created in next 5 years, jobs to be created in huge numbers

South Korean smartphone maker Samsung is soon to shift its production from Vietnam to India. Samsung is ready to make more than three lakh crore products in the country. According to media reports, Samsung plans to produce Rs 3.7 lakh crore worth of mobile phones in India in the next five years. Let us know that the iPhone maker, Apple has already agreed to invest in India. At the same time, some other companies are preparing to come to India.

Will invest under the government’s PLI scheme

It is reported that Samsung has discussed its plan with senior officials in the Ministry of Electronics and IT. However, the company has not said anything on this at the moment. News source PTI has said on condition of anonymity that the company is ready to make the smartphone in India under the Production Linked Incentive (PLI) scheme. The scheme was announced by the government in April. Under the scheme, companies will be given incentives ranging from four to six percent on completion of finished products and targets in India till the base year. The company will get this incentive for making mobile in India for the next five years.

Samsung has 24 percent share in the Indian mobile phone market

Samsung has a plant in Noida, Uttar Pradesh and is the company’s largest manufacturing unit in the world. The company is now preparing mobile phones for other countries market here. Samsung manufactures 50 percent of mobile phones in Vietnam. It is discussed that the company will make smartphones worth Rs 2.2 lakh crore, which will be included in the sub-category of Rs 15,000 under the PLI scheme. According to research firm IDC, Samsung has a 24 percent share in the Indian mobile phone market in the April-June quarter.

Center has launched three plans

The central government notified three schemes on 1 April to promote electronics manufacturing. This includes electronic component and semi-conductor manufacturing, modified electronics manufacturing clusters (EMC 2.0) and production incentive schemes. Under these three schemes, an incentive of Rs 50,000 crore will be given by the government in the next five years. Lava, Dixon Technology, Micromax and Paget Electronics have applied to take advantage of PLI. Lava plans to invest Rs 800 crore in the next five years under this scheme.

22 companies have applied so far

The announcement of the government’s PLI scheme has given a lot of preference to those companies which are now thinking of shifting the supply chain out of China. In view of this, Samsung is also on Apple’s way. Companies that have enabled Apple’s phones in Asia, Foxconn, Wistron and Pegatron, are now consolidating their base in India. On August 1, IT minister Ravi Shankar Prasad told that about 22 companies have applied under the PLI scheme and they want to start their production in the country. Under this scheme of the government, mobile phones worth Rs 11 lakh crore will be made in the next 5 years. This will generate about 12 lakh new jobs.