According to a cable engineers association and industry sources, India’s smartphone exports doubled to over US$11 billion in 2022, with a global electronics company providing about half of this. The achievement strengthened the government’s belief that India is headed for worldwide mobile device industry leadership.
India Prime Minister intends to capitalize on the local assembly operations for global electronics’ early successes, which have helped a US company produce around 7% of its output of mobile phones globally in India. India prime minister is attempting to position the nation as a potential hub for global manufacturing.
India decided that offering more incentives would be the best strategy for luring electronics manufacturers if it wanted to maintain its growth momentum. Delhi established a financial incentive program worth 170 billion rupees (US$2.1 billion) to entice laptop, tablet, and other electronics manufacturers to the South Asian country.
With US$11 billion in exports of mobile phones in the past year, India has achieved a significant milestone.
The initiative would also assist India in realizing its goals of becoming the global electronics supply chain and achieving an annual output of $300 billion by 2026.
According to reports, the incentives would offer businesses a 5% refund on the factory gate prices of finished goods. Local component sourcing will give manufacturers significant financial advantages. The current six-year plan gives manufacturers cashback when local product sales exceed a certain annual limit.
The government claimed these companies could produce IT products worth nearly US$41 billion and add more than 75,000 employments. The move would increase exports while helping meet domestic demand for IT products.
