Government grants incentives for Dell, HP, Foxconn to make IT hardware locally
Foxconn under its $2 billion incentive scheme to manufacture IT hardware domestically. Information technology minister Ashwini Vaishnaw said the companies are expected to invest 30 billion Indian rupees ($360 million) collectively, while creating 50,000 jobs in the sector. Approvals have also been granted to domestic manufacturers including Dixon Technologies and VVDN, the minister said.
The government had in May doubled the value of the incentive scheme to spur domestic production of laptops and tablets, following a lukewarm response to a previous programme. The country is offering cash-backs to manufacturers on sales of locally made goods that exceed an annual target. The scheme is key to India's ambitions to become a powerhouse in the global electronics supply chain, with the country targeting an annual output worth $300 billion by 2026.
The move comes at a time when India is wooing IT hardware players with policy sweeteners and incentive schemes, making a determined push to position itself as a global hub for hi-tech manufacturing. "I am happy to announce that 27 companies have been approved under the PLI IT hardware scheme. About 95 per cent of these...23 companies are ready to start manufacturing from day-zero," Minister for Electronics and IT Ashwini Vaishnaw said.
"This will set us up for being a big force in manufacturing of PCs, servers, laptops, and tablets," he added. These 27 companies will invest ₹3,000 crore. Big players, including Dell, Foxconn, and HP, are among the companies whose applications have been approved.
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