India on Wednesday unveiled an expanded incentive scheme to attract big-ticket investments in IT hardware manufacturing, doubling the amount to $2 billion as it aims to spur domestic production of laptops and tablets.
The scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting an annual output worth $300 billion by 2026.
“It will create additional incentives for companies to set up their manufacturing base in India,” India’s deputy IT minister Rajeev Chandrasekhar said.
The revised plan will be for a period of six years, with the country offering cash-backs for manufacturers on sales of locally made goods that exceed an annual target.
These companies are expected to produce nearly $41 billion of IT products and create more than 75,000 jobs, the government said.
The original incentive plan was announced in February 2021 with a $1 billion outlay.
MAIT, a key industry body that represent manufacturers such as Apple, Dell, and Samsung, welcomed the move and said it will help to meet the domestic demand for IT products as well as boost exports.
“We believe this scheme will help IT hardware sector to achieve the same level of success India had with smartphone manufacturing,” said Ali Akhtar Jafri, Director General at MAIT.
— ReutersGet latest Tech and Auto news from Techlusive on our WhatsApp Channel, Facebook, X (Twitter), Instagram and YouTube.
Author Name | Shweta Ganjoo