Government may give incentives worth millions of dollars to Apple, Dell to make laptops in India

The central government is planning to give financial incentives to companies producing laptops and tablets in the country. These companies include Apple and Dell. This will also enable these companies to compete with China as a production base. To reduce imports, the government wants to increase the production of laptops and tablets as well as make the country an export hub in the long term.

The technology ministry has modified an existing scheme for this and has sought suggestions from executives of electronics companies. Sources familiar with the matter said that this could include incentives of more than $500 million per company. The aim of this scheme is to entice Apple, Dell, HP and Asus to increase or start production in the country. The government particularly wants to encourage Apple to make iPads in the country. The company is already assembling iPhones in India through its Taiwanese suppliers.

Bloomberg News A government document seen by the BSE offers incentives worth Rs 4,500 crore per company. However, for this, foreign companies will have to invest at least Rs 700 crore in five years in addition to the expenditure made till March last year. The incentives will depend on the local components purchased by these companies and can be up to about 6 percent of the sales of finished products. However, this scheme can be changed after consultation with the industry.

Last year, a scheme of Rs 7,350 crore was launched to increase the manufacturing and export of IT products like laptops, tablets and personal computers in the country. However, these companies were not interested due to low incentives. Apple’s new iPhone 14 will be made in India. Apple expects to grow its business rapidly from this world’s largest smartphone market after China. The company started manufacturing in India in 2017 with the iPhone SE. It is manufacturing advanced iPhone devices including iPhone SE, iPhone 12 and iPhone 13 in India. iPhone 14 has also been added to this.