Lava to manufacture smartphones for Nokia and Motorola in India Nokia 8.3 5G

Lava is looking to capitalize on the new PLI schemes for electronics announced by the government by offering its manufacturing capabilities to other companies and earn subsidies. The first major beneficiary is now confirmed to be Nokia.

The Make in India initiative has had a big impact on how the smartphone industry has taken shape over the last few years. In a bid to encourage local manufacturing and assembly, the government offers subsidies to companies that do and subjects imports to a 20% duty. While the bigger companies set up their own facilities in India, the capital expenditure is a little too big for some others. Without investing in India they would be subjected to the aforementioned import duties which would make their products more expensive. Needless to say, that would be undesirable in a price-sensitive market.