“Even so, all smartphones and other electronic devices are made in China,” – a phrase most of us have probably heard. Until now it is true, but in soon future situation can change. The ever-growing manufacturing giant, India, plans to significantly support the IT segment in the coming years. The Indian Ministry of Electronics and Information Technology’s has nounced recently result of agreement on an incentive program for the industry, which the Indian authorities say will produce more than $ 143 billion worth of components, wrote Vosveteit.
The largest producers are heading to India
The Indian Ministry of Electronics and Information Technology stated only yesterday that the incentive program will include up to 16 companies, with companies such as Samsung and several major manufacturers of Apple smartphones on the list, which will invest in India. More specifically, there are companies like Foxconn, Wistron and Pegatron, etc., which are suppliers of comming phone makers. However, the situation should change fundamentally in the coming years, mainly due to a strong subsidy scheme.
“Apple and Samsung account for almost 60% of global mobile phone sales, and the scheme is expected to increase their production base in the country,” the ministry said.
India will providing these manufacturers with an incentive of 4% to 6% for additional locally produced goods over five years. However, the biggest benefit for India’s regions should be a really huge number of new options to employ, with a total of up to 800,000. However, the whole package includes 200,000 direct jobs and 600,000 indirectly created jobs, which will be linked to the whole industry.
Chinese brands are out of the game
The Chinese brands like Xiaomi, Oppo, Vivo, Realme etc. are not on the list though, they cover the big part of the market.