Government Planning to Give USD 3 Billion Incentives for Electronics Manufacturing, Apple May Get Big Benefit

According to a Bloomberg News report, the Ministry of Electronics and IT has proposed to provide incentives worth about $2.7 billion to manufacturers of components like batteries and camera parts. In this report, quoting sources, it has been said that the Ministry has also suggested reducing the import duty on some electronic components. This will help in reducing the cost of manufacturing. The final decision in this regard has to be taken by the Union Cabinet. If the scheme is approved, its details can be announced in the budget to be presented in February.

A request sent to the Ministry of Electronics and IT for information in this regard has not received any response. The government has given a lot of incentives to companies like Apple and Samsung to increase manufacturing in the country. This year the country’s smartphone market may exceed $ 50 billion (about Rs 4.2 lakh crore). This market is expected to grow by six percent on a year-on-year basis. Indian customers are moving towards premium smartphones. Due to this, the smartphone market is increasing in terms of value.

India’s share in the manufacturing of American devices maker Apple is also continuously increasing. In the last four years the company has created approximately 1,75,000 employment opportunities in the country. Apple’s iPhone manufacturing in the country has reached $10 billion (about Rs 84,000 crore) between April and October of the current financial year. However, China has a major stake in the company’s manufacturing. The company’s $10 billion FoB manufacturing is valued at around $15 billion when account sales, distribution, marketing, logistics and margins are included. The share of export of iPhones in this total value is about seven billion dollars.