Is Indian Govt attracts Foreign firms to manufacture in India?
Reportedly at a time when the indian government is seeking to expand local manufacturing and lure businesses that are looking to diversify their supply chains, over 20 global firms have shown interest in investing in the country. According to a report published on Bloomberg, over two dozen companies including samsung Electronics and Apple’s assembly partners have reportedly shown interest in investing in India.
Meanwhile the report comes after prime minister narendra Modi’s government had announced incentives that make electronic manufacturers eligible for a 4-6 percent payment of their incremental sales over the next five years. It said this could be the reason why two dozen companies have already pledged $1.5 billion of investments to set up mobile phone manufacturing plants in the country. Not just samsung but other major manufacturers like Foxconn, Wistron Corp, Pegaton Corp, have also shown interest in opening up plants in India.
Besides electronics and mobile phone companies, india has also extended similar incentives to pharmaceutical businesses, and there are plans to include more sectors as part of the broader strategy under the ‘Atmanibhar Bharat’ initiative. Some of the sectors that could see similar incentives include automobiles, textiles and food processing, added the report.
Meanwhile the report comes after prime minister narendra Modi’s government had announced incentives that make electronic manufacturers eligible for a 4-6 percent payment of their incremental sales over the next five years. It said this could be the reason why two dozen companies have already pledged $1.5 billion of investments to set up mobile phone manufacturing plants in the country. Not just samsung but other major manufacturers like Foxconn, Wistron Corp, Pegaton Corp, have also shown interest in opening up plants in India.
Besides electronics and mobile phone companies, india has also extended similar incentives to pharmaceutical businesses, and there are plans to include more sectors as part of the broader strategy under the ‘Atmanibhar Bharat’ initiative. Some of the sectors that could see similar incentives include automobiles, textiles and food processing, added the report.