India chooses global firms to boost IT products manufacturing
According to news reports, Indian government has chosen global brands such as Dell, Wistron, Flex and Foxconn as its key companies in a $1 billion incentive plan. The government aims to produce and increase exports of laptops, tablets and personal computers through this plan.
In addition, around 10 companies have been also selected including smartphone maker Lava and Dixon, which makes TVs for Xiaomi Corp, according to the statement by government. Moreover, under the plan manufacturers will get cash-backs of 1% to 4% of additional sales of locally made goods over four years, with 2019-2020 as the base year.
It is being projected that in the next four years these companies will produce 1.61 trillion rupees ($21.59 billion) of IT hardware and create more than 36,000 jobs, as per the government. Manufacturing is a key contributor in a country’s economic growth, and with pandemic waning down and new initiatives being taken by the government faster economic revival is expected.