India is considering a plan to provide loan subsidies to mobile device makers to attract Apple and Samsung suppliers to build factories in India. The proposal, proposed by India’s Ministry of Electronic Information Technology, includes interest subsidies for local borrowings to manufacturers, which could form part of India’s federal budget due to be announced on February 1, bloomberg reported on January 15, speaking on condition of anonymity. The proposal also includes the construction of industrial zones with tax and customs clearance functions, including infrastructure such as roads, electricity and water supplies.
India plans to increase its mobile phone output to $190 billion by 2025, up from $24 billion today, the official said.
Indian officials said the proposal had been submitted to India’s finance ministry, but no decision had been made. By producing high-end mobile devices for Apple and Samsung, India plans to shift its export focus to Europe and the United States.
A spokesman for India’s Ministry of Electronic Information Technology did not immediately respond to Bloomberg’s calls.
Prime Minister Narendra Modi’s government is under pressure to unemployment at its highest level in 45 years, and it hopes to attract overseas parts makers to help boost the country’s manufacturing sector to a quarter of gross domestic product.
Mr Modi’s “Made in India” programme has hampered investors’ pace with poor roads and port facilities, but it has also had some success. Foxconn Technology Group, the largest maker of Apple devices, is expanding production of iPhones in India, and it now has two factories in the southern Indian states of Andhra Pradesh and Tamil Nadu, which produce xiaomi and Nokia.