India is considering a plan to offer subsidized loans to mobile handset manufacturers in a bid to attract Apple Inc. and Samsung Electronics Co.’s suppliers to open factories in the nation, said a government official.
The proposals by the Ministry of Electronics and Information Technology includes offering interest subsidy on local borrowing by manufacturers, may form part of the federal budget to be unveiled on Feb. 1, the official said, asking not to be identified citing rules on speaking to the media. It also includes setting up of industrial zones equipped with taxation and customs clearance, along with infrastructure such as roads, power and water supply, the official said.
India plans to make $190 billion worth of mobile phones by 2025 from $24 billion now, the official said. Two calls made to the spokesman of the ministry remained unanswered.
There has been some success. Foxconn Technology Group, the largest assembler of Apple handsets, is ramping up manufacturing of iPhones in India. It already has two factories in the southern Indian states of Andhra Pradesh and Tamil Nadu, where it makes devices for Xiaomi and Nokia. Adding more production in India would help Apple and Foxconn diversify from China amid ongoing trade tensions with the U.S.
The proposals have been forwarded to the finance ministry but no decision has been taken, the official said.
With the manufacturing of high-end mobile handsets for Apple and Samsung, India plans to shift its export focus to Europe and the U.S., the official said.
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8 Comments on this Story
Raj Tillan364 days ago
carrot does not work before Apple
Jayeshkumar Panchal370 days ago
The easiest way to Lower the Interest rate not just for Apple and Samsung suppliers but for Everybody in India is to ask or force these Automakers to use what is in a pull-back Toy Car!. ..Trrrr (Braking), ..Vroom (= Free Acceleration!). A completely Energy, Fuel and Pollution Free Acceleration of all our Automobiles by using Only the Braking Energy that is Recovered and Stored in a Transmission!, just like in pull-back Toy Car!. ..and a Huge Saving in Fuel Import Bill that will not only alter the Fiscal Situation and Exchange Rate but Lower the Inflation, by lowering the Cost of Transportation and everything else in India by a Huge Margin.
Our Automobiles made a Huge Energy Mistake right from their creation more than a century and a half ago, of not recovering their Kinetic Energy while braking and using that same Energy for powering their next Acceleration, and instead wasting away all that Kinetic Energy as Heat in those Friction Brakes and then stupidly using a lot of New Energy, Engine Power and Fuel for their Next Acceleration. This Simple and Silly but Huge Energy Mistake has unfortunately remained till date in all our Automobiles, even after a Century of Motoring and many Oil Crisis and Wars, as also this huge Air Pollution, Climate Change and Global Warming; but is sadly being repeated even in our Electric, Hybrid and Hydrogen vehicles; with even the Latest of these Green Cars still using those Energy Killing Friction Brakes!, ..that too on all 4 wheels!.
realdeshbhakt 371 days ago
Modi govt is famous for grand announcements,event management,advertisements while nothing happens on ground.Fact of matter is modi is just showman and not a doer.