TEKNOKU.me – No one can argue if you call China as the world’s largest smartphone manufacturer. Three of the top five global smartphone vendors are occupied by manufacturers from China, such as Huawei, Xiaomi, and Oppo.
In addition to having an assembly plant, China is also a supplier of non-Chinese smartphone component manufacturers, including Apple.
China will be challenged by India’s ambition to become the center of world electronics manufacturing, including smartphones.
The reason is that India has invested 500 billion INR or equivalent to 6.6 billion USD.
As a first step, the Indian government will target five global suppliers and expand financial incentives by 6 percent on increasing sales of goods made in India within five years.
The government will also inject incentives of up to 25 percent on capital expenditures provided to produce electronic components, semiconductors, and other components.
Manufacturing companies that have ready to use facilities will also be offered an offer.
India’s Minister of Electronics, Technology, and Information, Ravi Shankar Prasad, said that this incentive could make India the largest exporter of smartphone components in the world and create millions of jobs in India.
It is predicted, this policy will increase the value of local electronic manufacturing in India by 40 percent by 2025.
Indian Prime Minister Narendra Modi has previously requested that India be independent of local manufacturing and create more jobs to restore the economy affected by the corona pandemic.
Some time ago, India had a chance to lockdown or quarantine the area because of the increasing Covid-19 cases there.
“This scheme will help India become a country that can be totally independent and penetrate the global market,” explained Amitabh Kant, CEO of Niti Aayog, a government think tank.
“This will make India a global electronics manufacturing leader,” added Aayog.