The Indian government today approved $ 1.02 billion to boost local manufacturing and exports of IT products such as laptops, tablets, personal computers and servers. This is part of a plan launched last year and valued at $ 6.65bn overall.
Minister Ravi Shankar Prasad is confident that the production stimulus plan will help India export more than $ 33 billion in IT goods. The plan provides for a return to producers of 1% to 4% of the value of additional sales of locally made goods over four years. The baseline is the level of 2019-2020.
The plan is believed to attract overseas manufacturers and boost the development of Indian companies, creating about 180,000 jobs.
Specifically, India is expected to roll out some Apple iPad models as Apple’s manufacturing partners Foxconn and Wistron are already expanding their presence in India. The incentive strategy also pushed Pegatron to establish a manufacturing base in India. In total, the three Taiwanese companies have pledged to invest about $ 900 million in iPhone production in India.
The government’s strategy, coupled with India’s huge market, has already helped the country become the world’s second largest smartphone manufacturer after China. Now New Delhi wants to replicate this success in other categories of electronic devices.
Last week, the cabinet approved a $ 1.68 billion plan to develop local production and export of telecommunications and networking equipment.
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