Indian government has planned to offers subsidized loan to mobile handset manufacturers in a bid to attract suppliers of Apple Inc and Samsung Electronics Company to open factories in India, the government said. Ministry of Electronics and Information Technology given the proposals which include offering interest subsidy on local borrowing by manufacturer, which may part of the federal budget to be unveiled on 1 February, also said. It also includes setting up of industrial zones equipped with taxation and customs clearance, along with infrastructures such as roads, power and water supply, it added.
PM Narendra Modi’s government brings down a jobless rate which is highest in 45 years, wants to attract overseas component makers and help to boost the share of manufacturing in Asia third-largest economy to a quarter of the nation’s gross domestic product.
Foxconn Technology Group is 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. Moreover, increase production in India would help Apple and Foxconn diversify from China amid ongoing trade tensions with the US.
Read EquityPandit’s Nifty Outlook for the Week