Samsung investing $654.36 million in Display manufacturing in India, the Government offers financial benefits

Major news has been coming from the Uttar Pradesh government. The state government has announced that they will be providing financial benefits to Samsung to set up a $654.36 million or Rs. 4,825 crores display plant. Samsung, the biggest smartphone seller worldwide, has a display factory in China which, according to the reports, will be shifted to India now. This move will surely boost Prime Minister Narendra Modi’s ‘Make in India’ campaign. The central government wants to turn India into a manufacturing hub. Social campaigns like ‘Vocal for Local’, ‘Make in India’ and ‘Aatmanirbhar Bharat’ are aimed to make India a production hub. This move to invite Samsung to expand its wings in India is just another milestone for the government.

India is the second-largest smartphone market in the world. It is already expanding at an exponential pace. Thus, the financial benefits which Samsung is deemed to receive will be very helpful for the company in the future. The government of Uttar Pradesh has stated that the South Korean manufacturing company will receive Rs 7 billion or Rs. 700 crores in financial benefits. Apart from this, Samsung will also be exempted from a tax payable on the transfer of land for the factory. The company will benefit from existing synergies in Uttar Pradesh.

In 2018, they expanded their production capacity of its plant in Noida, Uttar Pradesh. This move made that factory the world’s largest mobile manufacturing plant. The new display plant we are talking about is expected to be operational from next year. India will benefit from this new plant as it is expected to provide direct jobs to 510 people. 

A few months before, the Indian government announced financial incentives worth $6.5 billion for 16 countries to drive domestic production of smartphones. Samsung is a beneficiary of that plan as well. Apart from Samsung, other companies are also thinking to move their production to India. The US tech giant Apple has already started making iPhones in India with the aid of suppliers like Foxconn and Wistron. With all these policies, India is set to become a really attractive place for smartphone OEMs.

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