Minister of Railways, Ashwini Vaishnaw said, India has emerged as an important nation for companies to expand their supply chains with the government undertaking several initiatives such as PLI (Production-linked Incentives) schemes, and abolishing archaic laws, and communications, compliances. During the World Economic Forum 2023 meeting in Davos, Minister Ashwini Vaishnaw said, People, want effective & resilient supply chains in which cost efficiency is no longer the sole factor for the supply chain to be differentiated.
He also pointed out global disruptions in the last few years and said supply chains have to work. There would be many supply chain partners who are looking for alternate new places and geographies and our nation India is of course a very important destination.
People want effective & resilient supply chains in which cost efficiency is no longer the sole factor for the supply chain to be differentiated.
The activities have increased in India over the last 1.5 years and a broader component supply chain is shifting into the country. Homegrown companies are playing important roles as well as building components in many parts of the supply chain and it is very encouraging, it will create job opportunities, and economic opportunities and do more Production-linked incentives. For example, servers, hardware, PCs and for laptops. This approach will work quite well and there would be more sectors.
The PLI scheme was launched in 2020, for handset manufacturers from dominant geographies such as Vietnam and China. On the back of this scheme, India is attempting to catch up with the 2 countries which still lead the world in handset exports. India aims to export mobile phones to the tune of $60 billion by 2025-2026.
The PLI scheme was launched in 2020, for handset manufacturers from dominant geographies such as Vietnam and China.
Samsung, a South Korean company as well as Apple’s 3 contract manufacturing partners- Foxconn, Wistron, and Pegatron – are part of the handset Production-linked incentives scheme. There was regulatory stability in India and cited reforms in the telecom sector which have reduced the time for getting permissions. Earlier, it used to take 7-8 months for getting permission from the telecom department, but now in 70 to 80 per cent of the cases, it happens instantly. Things are improving in every sector. The space has also been opened to private industries and there are young startups, who are now launching satellites.