The Indian government has given the green light to 27 companies, including Dell, HP, and Foxconn, for investments under its $2 billion incentive scheme aimed at promoting the local manufacturing of IT hardware. Information technology minister Ashwini Vaishnaw revealed that the approved companies are expected to collectively invest 30 billion Indian rupees (approximately $360 million) and generate 50,000 jobs in the sector.
In addition to multinational corporations, approvals have been granted to domestic manufacturers, such as Dixon Technologies and VVDN, signaling a diverse participation in the government’s push for increased local production.
The incentive scheme, launched to encourage the domestic production of laptops and tablets, has gained momentum with the latest approvals. The government had doubled the value of the incentive scheme in May, responding to a lukewarm reception to a previous program.
Under the scheme, manufacturers are eligible for cash-back incentives on sales of locally produced goods that surpass an annual target. This initiative is a crucial component of India’s broader ambitions to establish itself as a significant player in the global electronics supply chain. The country aims to achieve an annual electronics output worth $300 billion by 2026, emphasizing its commitment to fostering a self-reliant and robust manufacturing ecosystem.
The participation of leading global players like Dell, HP, and Foxconn highlights the attractiveness of India’s incentive program and its potential to create a conducive environment for the growth of the IT hardware manufacturing sector. As the country strives to enhance its manufacturing capabilities, such initiatives contribute to job creation, technological development, and economic growth.