Of the 16 companies, three of Samsung and Apple’s major contract manufacturing partners will win $ 6.65 billion as part of India’s federal plan to increase domestic smartphone production over the next five years. These companies applied for an incentive program in August.

In a statement released Tuesday night, India’s Ministry of Electronics and Information Technology (MeitY) announced that these companies will produce smartphones and other electronic components worth more than $ 143 billion over the next five years. did. In return, India will offer 4% to 6% incentives for additional sales of locally produced products over a five-year period, with 2019-2020 as the base year.

New Delhi’s move aims to significantly improve India’s production and export capacity and create more local jobs. According to the Indian province, about 60% of locally produced products are exported. According to the ministry, the two companies will create more than 200,000 direct jobs during the next five years and 600,000 indirect jobs during the same period.

The move is also an introduction to how to change the dynamics among the major smartphone makers over the next few years in India, the second largest market in the world. The inclusion of Foxconn, Wistron and Pegatron underscores how Apple plans to rapidly expand its domestic production capacity in India. Wistron started assembling some iPhone models in India three years ago, followed by Foxconn. Pegatron has not started production in India yet.

“Apple and Samsung together account for nearly 60% of global mobile phone sales, and the plan is expected to increase local manufacturing bases,” the ministry said.

The ministry added, “The industry has regained confidence in the remarkable progress India has made as a world-class manufacturer, which resonates strongly with the clear call of the independent Prime Minister of India, Atma Nirpar Bharat.” ..

Indian companies Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are also approved. However, Chinese smartphone manufacturers Oppo, Vivo, OnePlus and Realme are not included in the list, who have not applied for the software. Chinese smartphone sellers currently account for about 80% of the Indian market. Samsung was the former leader in the Indian smartphone market and has faced fierce competition with Xiaomi and Vivo in recent years.