Why it matters: India is growing its efforts to turn into a full-blown manufacturing hub as the local government wants to make the country completely self-reliant and increase its exports of consumer electronics. India has a 500 billion rupees ($6.65 billion) plan to bring more electronics manufacturing to the country in the coming years, taking advantage of changing conditions in the global supply chain and a growing opportunity to use the US-China trade war to further its national interests.

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.