PLI scheme: Centre’s hard stance has put Chinese handset makers like Xiaomi, Oppo, Vivo in dilemma

The border stand-off with China and the government’s hard stance towards Chinese companies operating in the domestic space, has put Chinese handset makers like Xiaomi, Oppo, Vivo, Realme, etc, in a quandary with regard to applying for the Rs 41,000-crore production-linked incentive scheme. Government officials, however, told FE that since the scheme is for export market, hurdles would not be put in the path of Chinese players and if they apply their case would be considered on merits.

The scheme, under which the government will offer incentives to selected firms, is basically aimed to attract global electronics firms to set up manufacturing bases in the country for export purposes. So far, Foxconn and Wistron, the global contract manufacturers for Apple, have registered for the scheme, while among the local players, Lava, Dixon Technologies, and Karbonn have done the same. However, none of the Chinese mobile makers present in the country have so far registered for the scheme and are still reported to be weighing their options.