Korean Media: 625 Billion INR, India Unveils Massive Subsidy for Smartphone Manufacturing!
On September 24, South Korean media outlet NEWSPIM published an article stating that the Indian government has formally announced a plan to support smartphone manufacturing.
Recently, the Indian government officially released detailed guidelines for the "Mobile Phone Manufacturing Scheme (MPMS)." Approximately one month after receiving approval from the federal cabinet, the government launched the implementation of the scheme by unveiling specific provisions.
MPMS is a large-scale subsidy program aimed at positioning India as a leading global hub for smartphone production and export. It supersedes the Production-Linked Incentive (PLI) scheme, which concluded in March this year, and will run for five years, extending through the fiscal years 2030–2031.
The scheme provides differentiated incentives ranging from 2.25% to 5% on sales of smartphones produced in India. An additional reward of up to 1.5% is available if key components are sourced domestically during production. Furthermore, domestic brands that directly participate in product design and research and development may receive an extra incentive of 3% based on sales volume.
The Indian government has committed a total budget of 625 billion INR (approximately 43.88 billion RMB) to the MPMS initiative and anticipates the creation of around 60,000 jobs upon full implementation.
Under the "India Mobile Phone Manufacturing Scheme," applicants must have a subsidiary established in India to qualify for subsidies. However, to demonstrate commitment to nurturing Indian enterprises into global brands, different revenue thresholds apply to domestic versus international firms.
For global conglomerates such as Samsung Electronics and Apple, the revenue threshold for the fiscal year 2025–2026 is set at 100 billion INR. Domestic companies may apply for MPMS support if their revenue reaches or exceeds 10 billion INR during the same period.
Indian-based companies must meet the following criteria: they must operate manufacturing facilities within India, have more than 51% ownership held by Indian nationals, hold intellectual property and trademark rights in India, and maintain their own research and development and design centers located in India.
Original source: toutiao.com/article/1877196664056968/
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