MUMBAI: In a US$1 billion incentive scheme to create and promote exports of laptops, tablets, and personal computers, India named Dell Inc, Wistron Corp’s ICT, Flex Ltd, and Foxconn’s Rising Stars as its preferred global enterprises on Thursday. The government also announced the selection of ten Indian firms, including smartphone maker Lava and Dixon, which manufactures TVs for Xiaomi Corp in India.
Manufacturers will receive cash-backs ranging from 1% to 4% of incremental sales of locally created items over a four-year period, with 2019-2020 as the base year.
According to the government, these enterprises are estimated to produce 1.61 trillion rupees (US$21.59 billion) in IT gear over the next four years, creating more than 36,000 employment.
According to Reuters, the proposal is also likely to assist Apple Inc in assembling some of its iPad tablets in India.
Apple suppliers Foxconn and Wistron have expanded in India, while Pegatron Corp has established a presence there, thanks to Prime Minister Narendra Modi’s policy push in the electronics sector.
Modi’s plan, combined with India’s massive market, has helped India become the world’s second-largest mobile manufacturer behind China.
In order to reduce imports, New Delhi aims to emulate the success of smartphone manufacture with other gadgets.
(One US dollar equals 74.5640 Indian rupees)
(Sankalp Phartiyal and Rajendra Jadhav contributed reporting; Richard Chang edited the piece.)/n
