Samsung's dramatic shift in India's incentive schemes reveals critical market dynamics. The Korean giant earned over 1,000 crore under the smartphone PLI but completely abandoned the telecom equipment scheme despite applying. Out of 42 applicants, 16 including Samsung never claimed incentives. The company withdrew after determining local telecom gear manufacturing was unviable due to limited customer demand, choosing imports instead. This contrasts sharply with its smartphone success where it leveraged its Noida facility to become India's export hub. Only 15 percent of the 12,195 crore telecom PLI scheme was actually disbursed as the five-year program ends this month. The telecom sector's B2B nature with few major service providers creates structural challenges that consumer-focused smartphone manufacturing doesn't face.
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