India is planning to strengthen its programme of financial incentives for electronics producers in the country, so it wants to attract even more global brands like Apple, Dell and HP, and to become an alternative to China's large production base.
The Ministry of Science and Technology of India presented to company top managers an updated programme, which provides for payments of up to Rs. 45 billion over the costs incurred prior to March 2021, the amount of the incentive payment will depend on the volume of procurement of local production components and will reach 6 per cent of the equivalent value of the finished product sold.
The programme can be changed through consultations with industry: last year, the country ' s management launched a 73.5 billion rupees project aimed at increasing local production and exports of technological goods, including tablets, laptops and dectopes; however, the project was not recognized because financial incentives were insufficient for producers.
China's appeal as a productive partner is weakened by geopolitical factors and severe anti-pandamic measures, and there are indications that Indian government measures already in place have been successful, so new injections will increase the impact. The production of the new iPhone 14 in India has been starting only a few weeks after the release in China, and Apple may have expanded its production in China in the foreseeable future. In addition to direct financial incentives, the American electronic giant could attract a local market: in the last quarter, demand for PCs and tablets in India increased by 12%, according to Canallys, although it declined globally.