India is seeing an unprecedented electronics boom and recently according to MOS Technology Rajeev Chandrasekhar in an interview with Bloomberg TV, Apple Inc. and Samsung Electronics Co. are among the companies interested in expanding their electronics production in India. This development is a positive step for India’s efforts to establish itself as a manufacturing hub and compete with China.
The country is aiming to build on its success in the smartphone industry and extend it to other product categories, as stated by Chandrasekhar. To attract significant investments in IT hardware manufacturing, the Indian government recently unveiled an enhanced incentive scheme, increasing the amount to $2 billion.
This scheme targets the production of laptops, tablets, personal computers, and servers, benefiting global and Indian companies such as Dell, Wistron Corp, Dixon, and Foxconn.
The success of this program is crucial for India’s goal of becoming a major player in the global electronics supply chain.
The country aims to achieve an annual output of $300 billion by 2026. The original incentive plan, introduced in February 2021, had a budget of $1 billion.
Past efforts by the nation in this sector have resulted in Apple and Samsung exporting billions of dollars worth of handsets from the country. The new incentive plan for IT hardware production is specifically designed for companies like Dell Technologies Inc., HP Inc., and Lenovo Group Ltd., according to Chandrasekhar. The government also intends to attract chip fabrication and packaging plants to India, seeking to revive its efforts in this area.
The move has been welcomed by industry body MAIT, which represents manufacturers such as Apple, Dell, and Samsung. They believe that it will help meet domestic demand for IT products and boost exports.
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