Apple Contract Manufacturer of Iphone Foxconn Urges Government to Pay Rs 6 Billion of Pending Subsidy

American devices maker Apple’s supplier Foxconn has demanded billions of rupees of outstanding subsidy from the central government under the Production-Linked Incentive Scheme. The government had launched a scheme of more than Rs 41,200 crore to increase electronics manufacturing. Manufacturers were given subsidy in this.

Bloomberg’s Report Quoting sources having knowledge of this matter, it has been told that some part of this scheme has not been allocated. The reason for this was that some companies were not meeting the estimated manufacturing targets. Foxconn and contract manufacturer Dixon Technologies argue that as per the terms of the scheme, they are eligible to receive some portion of the unallocated funds. If this fund is released by the government, then Foxconn can get about Rs 6 billion and Dixon Technologies can get about one billion rupees.

Foxconn, Dixon Technologies and the Technology Ministry did not respond to requests for information. In this scheme, subsidy based on the value of manufacturing was given to Indian and international electronics companies. However, subsidy was to be given only up to a limited level of manufacturing. The government has given a lot of incentives to companies like Apple and Samsung to increase manufacturing in the country.

This year, the country’s smartphone market may be worth more than $ 50 billion (about Rs 4.2 lakh crore). This market is expected to grow by six percent on a year-on-year basis. Indian customers are moving towards premium smartphones. Due to this, the smartphone market is increasing in terms of value. India’s share in the manufacturing of American devices maker Apple is also continuously increasing. In the last four years the company has created approximately 1,75,000 employment opportunities in the country. Apple’s iPhone manufacturing in the country has reached $10 billion (about Rs 84,000 crore) between April and October of the current financial year. However, China has a major stake in the company’s manufacturing. Apple’s $10 billion FoB manufacturing is valued at approximately $15 billion when account sales, distribution, marketing, logistics and margins are included. The share of export of iPhones in this total value is about seven billion dollars.