Government plans to provide incentives worth $3 billion for electronics manufacturing
To encourage electronics manufacturing in the country, the central government has given incentives in the last few years. Government subsidies can be given to electronic component makers. Along with this, tariffs on imports can also be reduced. This can especially benefit smartphone manufacturing companies including Apple.
According to a Bloomberg News report, the Ministry of Electronics and IT has proposed to provide incentives worth about $2.7 billion to manufacturers of components such as batteries and camera parts. In this report, quoting sources, it has been told that the ministry has also suggested reducing the import duty on some electronic components. This will help in reducing the cost of manufacturing. The final decision in this regard has to be taken by the Union Cabinet. If this scheme is approved, its details can be announced in the budget to be presented in February.
The request sent to the Ministry of Electronics and IT for information in this regard has not been answered. The government has given a lot of incentives to companies like Apple and Samsung to increase manufacturing in the country. This year, the country’s smartphone market can be more than $ 50 billion (about Rs 4.2 lakh crore). This market is expected to grow by six percent on a year-on-year basis. Indian customers are moving towards premium smartphones. This is increasing the smartphone market in terms of value.
India’s share in the manufacturing of American devices maker Apple is also increasing continuously. In the last four years, the company has created about 1,75,000 employment opportunities in the country. Manufacturing of Apple’s iPhone in the country has reached $ 10 billion (about Rs 84,000 crore) between April and October of the current financial year. However, China has a large share in the company’s manufacturing. The company’s $10 billion FoB manufacturing value is around $15 billion when account sales, distribution, marketing, logistics and margins are included. The export of iPhones accounts for around $7 billion of this total value.
