After Govt's PLI Push, Indian Phone Makers To Invest Around Rs 2,000 Crore To Expand Manufacturing Capabilities

Indian mobile phone makers are planning to invest around Rs 2,000 crore over the next five years to expand their manufacturing capabilities, reports Economic Times.

The development comes after the government earlier this week approved the applications of 10 mobile manufacturers including five domestic firms - Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus - to avail the production linked incentives (PLI).

The PLI scheme for large scale electronics manufacturing was notified on 1 April and extends an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year i.e. FY20.

Optiemus Electronics will reportedly set aside Rs 300 crore to manufacture items including display assemblies and back covers.

Meanwhile, Lava has said that it will invest Rs 800 crore over the next five years in the country, of which Rs 100 crore will be invested in the first year itself.