Govt. makes changes to incentive rules in India, tries attracting Apple, others to make more iPhones in the country

India may see more iPhones and other handsets being manufactured in the coming months as the government has eased some rules for its PLI (Production Linked incentive) scheme, according to a report by the Economic Times. It has been reported that as a part of the changed scheme, the government has dropped a clause that included the evaluation of plant and machinery that came from China and South Korea.

“The empowered committee of secretaries met on Friday and decided to remove the clause, which evaluated plant and machinery brought into India at 40% of its value, and has agreed to a few other changes so that manufacturing could shift to India in a big way,” an official told ET.

Also mentioned is that the Indian govt is already in talks with Pegatron, one of Apple device manufacturers, to relocate some of its manufacturing units to India.

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The move is basically meant to attract US companies to diversify their manufacturing plants from China to other parts of the world as well.

Some of the other changes made include removal of various caps “including another clause which said the government would release the incentive despite the industry meeting its targets only if it had the money to do so.” In addition a new clause is added that lets companies seek relief from touching targets during natural calamities, for instance Covid-19.

Earlier this month it was reported that Apple is already in talks with top government officials over the last few months "examining the possibility of shifting nearly a fifth of its production capacity from China to India". According to reports, Apple currently sells smartphones "worth some $1.5 billion in India, of which less than $0.5 billion is locally manufactured, and has market share of some 2-3%".