The South Korean Company Samsung is contemplating a plan to move a major part of its smartphone production to India from Vietnam and other countries. The idea of the company is to make India its production hub and manufacture devices worth over $40 billion in the course of next five years.

Currently, 50% of Samsung smartphones comes from Vietnam, one of the largest smartphone exporters after China and the other 50% comes from manufacturing units of Indonesia, Brazil, South Korea. Due to the higher labour costs, Samsung is diminishing its production lines and winding up from South Korea.

Samsung is diversifying its production lines to manufacture smartphones under the Production Linked Incentive (PLI) Scheme. The company has also submitted an estimation to the government for making smartphones worth $40 billion in the next five years under the PLI scheme. Over $25 billion of smartphone produced will have a factory price of $200 or below Rs 15,000 and most of phones lying under this category would be exported.

Samsung is the next smartphone maker to make India as its major production hub and has submitted a proposal to the Indian government after the rival company, Apple. The global market of smartphone exports by value is estimated at around $270 billion, Apple with 38% of market share and Samsung with 22% while in terms of volume, Samsung contributs 20% and Apple with 14%.