(CTN News) – To spur domestic production of laptops and tablets, the government of India announced on Wednesday an expanded incentive scheme aimed at attracting big-ticket investments in the IT hardware industry. The incentive scheme is worth $2 billion, doubling the amount previously announced.
India’s Ambition to Become Global Electronics Manufacturing Powerhouse
Several global and Indian companies are expected to benefit from this program, which also covers personal computers and servers, such as Dell (DELL.N), Wistron Corp (3231.TW), Dixon (DIXO.NS), and Foxconn (2317.TW).
Through this program, India hopes to become a major player in the global electronics supply chain, as it aims to have an annual output of $300 billion by 2026, one of the highest targets in the world.
This will make it easier for companies to establish their production bases in India as it will create additional incentives,” Rajeev Chandrasekhar, India’s deputy information technology minister, said.
During six years, the revised plan will be implemented, and the country will reward manufacturers who sell products made locally and exceed an annual target with cash-backs on selling those goods.
Cash-back Incentives and Job Creation in India’s IT Sector
The government estimates that these companies will produce nearly $41 billion worth of IT products over the next decade, creating more than 75,000 jobs.
The incentive plan was initially announced in February 2021 with a $1 billion expenditure for the first year.
Even though MAIT represents key manufacturers such as Apple, Dell, and Samsung, the industry body welcomed the move and said that it would help meet the domestic demand for IT products and boost future exports.
“With the help of this scheme, we are hopeful that the IT hardware sector can achieve the same level of success India had with smartphone manufacturing,” stated Ali Akhtar Jafri, Director General of MAIT.