People using smartphones
People using smartphones | Dhiraj Singh | Bloomberg
Text Size:

Mumbai/New Delhi: India is offering financial incentives and plug-and-play facilities with an outlay of about 500 billion rupees ($6.6 billion) to attract investments from global companies in the manufacture of mobile phones and related components.

The government will initially target five global suppliers and extend a financial incentive of as much as 6% on incremental sales of goods made in the country for a period of five years, according to the ministry for electronics and information technology. An incentive of 25% on capital expenditure will be provided for production of electronic components, semiconductors and other parts. Electronic manufacturing clusters with ready-to-use facilities will be offered.

The move has the potential to make India as global hub for mobile phone manufacturing and make it the largest exported item out of India while generate half a million jobs, Ravi Shankar Prasad, minister for electronics and information technology, said at a press conference in New Delhi Tuesday. While the clusters will prompt large companies to bring along their ancillary units, the local value addition in electronics manufacturing will rise to 40% by 2025.

India is seeking to woo global companies looking to diversify their manufacturing beyond China after a trade war and a pandemic has put the focus on the risks to supply chains. Prime Minister Narendra Modi has called for a self-reliant India and wants to encourage local manufacturing to create more jobs and revive an economy that is hurting from a lock down imposed to contain the spread of the coronavirus.

“The schemes will help India become totally self-reliant and penetrate global markets,” Amitabh Kant, chief executive officer at government think tank Niti Aayog, said at the press conference. “It will bring global value chain and enable India to become a leader in electronics manufacturing.” – Bloomberg


Also read: India now the second-largest mobile phone manufacturer in the world: Ravi Shankar Prasad


 

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism

Share Your Views

LEAVE A REPLY

Please enter your comment!
Please enter your name here