The move comes just as the country is easing restrictions related to the travel or foreign workers and engineers during the pandemic, and will target five companies that operate on a global scale in the technology industry, who will get an incentives extension of anywhere between four and six percent on sales of products manufactured in India.
According to the Economic Times, there's also a second scheme in the works that would apply to five local companies. These organizations will be selected from major manufacturers of electronic components, semiconductors and mobile devices, and will receive an additional incentive of 25 percent on capital expenditure related to their bill of materials.
India has been exploring ways to become a large manufacturing hub to rival China for years, and so far it has managed to convince companies like Samsung and Apple to move a small part of their smartphone production to the country, including flagships. This has mostly served towards exports to the EU, but the Indian government wants to expand its horizons and increase the local added value in electronics manufacturing to 40 percent by 2025.