New Delhi: Samsung is looking forward to shift more of its smartphone production business to India. Acoording to reports, the company is looking to produce devices worth $40 billion and export those in the $200-plus range.
The cost of labour seems to be increasing in South Korea, due to which the company nearly has decided to shift its production to India in search of cheaper labour and shut down back there in South Korea. The company is making plans to produce devices worth over ₹3 lakh crore locally. Currently, Samsung manufactures max devices in Vietnam along wih some in Brazil and Indonesia. As reported by Business Insider, the company is looking to diversify its production lines for making smartphones in India under the Production Linked Incentive Schemes (PLI).
As of now, Samsung's exports from India account to 2% which can be enhanced if Samsung plans to expand manufacturing as it also exports to other countries from its largest manufacturing unit which is set up in Noida. Companies already are rushing to shift their bases from China to India as they are aware of India's emphasis towards its ‘Atmanirbhar Bharat’ mission.
Few weeks ago Cupertino giant started the assembly line for the iPhone XR in the country to which Commerce and Industry Minister Piyush Goyal referred as a significant boost to ‘Make in India’ campaign.
India has become an important market for all smartphone vendors. It already has over 50 crores smartphone users. Suppliers manufacturing iPhone locally in India would help the company avoid a 20% tax that it is needed to pay for importing the handset from its global manufacturing facilities.