Boost for Make in India: GoI approves subsidies for Foxconn, Lenovo, other hardware firms under PLI scheme

In a strategic move to enhance domestic manufacturing and position itself as a key player in the global electronics supply chain, India has sanctioned subsidies for some of the world’s leading tech hardware companies. Notable beneficiaries include Foxconn Technology Group, a major Apple supplier, and computer giant Lenovo Group, among others. The Indian government, in an official statement released on Saturday, confirmed the approval of subsidies for 27 companies under the Production Linked Incentive (PLI) scheme. This initiative covers domestic assembly of desktop and laptop personal computers (PCs), tablets, and various other tech hardware. The approved companies include industry giants such as Dell, HP, and AsusTek Computer. According to Ashwini Vaishnaw, India’s Minister for Railways, Communications, Electronics, and Information Technology, “Twenty-three out of 27 approved applicants are ready to start manufacturing on day zero. Four companies will commence production in the next 90 days.” Contrary to recent reports, Apple contract manufacturer Luxshare Precision Industry Co has vehemently denied walking away from a substantial $330 million deal in India. The Shenzhen-listed firm clarified on Monday that it had “never made such an investment decision.” The Indian government anticipates that the PLI scheme will directly create 50,000 jobs and indirectly contribute to an additional 150,000 jobs. This projection is based on a total investment of $360 million, with the estimated value of information technology hardware production expected to reach $42 billion. This recent round of subsidy approvals follows the earlier PLI phase focused on smartphone manufacturing, providing government incentives to the Indian unit of Taiwanese firm Foxconn, officially known as Hon Hai Precision Industry. The move is in line with Prime Minister Narendra Modi’s “Make in India” campaign, signalling India’s commitment to economic transformation and the diversification of global manufacturing beyond mainland China. The approval of subsidies for Lenovo, the world’s largest PC vendor, marks a notable development, particularly amid rising geopolitical tensions between China and India. Other Chinese tech companies, such as Vivo, have faced challenges in India, with four executives arrested last October for alleged visa violations and tax evasion. As India seeks to reduce its reliance on imports from China and tighten scrutiny of Chinese companies operating in its market, the PLI scheme aligns with Prime Minister Modi’s agenda to transform India into a new high-tech manufacturing hub. Meanwhile, Luxshare’s decision to expand its contract manufacturing operations in Vietnam instead of India underscores the ongoing trend of diversifying production beyond China. (With input from agencies)