India Plans $6.6 Billion in Incentives To Woo Smartphone Makers

India is offering financial incentives and plug-and-play facilities with an outlay of about 500 billion rupees ($6.6 billion) to attract investments from global companies in the manufacture of mobile phones and related components. From a report: The government will initially target five global suppliers and extend a financial incentive of as much as 6% on incremental sales of goods made in the country for a period of five years, according to the ministry for electronics and information technology. An incentive of 25% on capital expenditure will be provided for production of electronic components, semiconductors and other parts. Electronic manufacturing clusters with ready-to-use facilities will be offered. The move has the potential to make India as global hub for mobile phone manufacturing and make it the largest exported item out of India while generate half a million jobs, Ravi Shankar Prasad, minister for electronics and information technology, said at a press conference in New Delhi Tuesday.

Re:

[vlad30]

Actually this seems to target China which India has a border issue. Why Fight when you can take business away from them especially now the much of the world has an issue with China

Companies will be dumb to fall for it

[backslashdot]

Incentives are great until a few years or less from now when the people forget all the jobs and good things it brought them and then say the companies took advantage, got paid, etc. Some people will blame you after you give them what they asked for. Difference is theyâ(TM)ll have more resources to fight you.

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[shipofgold]

I have worked lots of projects in India and you are pretty much on the money. What will happen is that lots of expats will show up to get things started. Factories built, supply lines setup, assembly lines running.

But India is controlled chaos, and many problems escalates into show stoppers because there is a 'good enough' mentality instead of a 'make it perfect' mentality. So things will slowly degrade as the 'good enough' mentality starts setting in (the expats have all left).

Two points I have observed

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[youngone]

The "good enough" problem was solved when western companies set up manufacturing in China. I assume they will use the same methods in India.

This amounts to...

[hackingbear]

state subsidy [wikipedia.org].

Of course, everyone [wikipedia.org] is doing it [marketplace.org], but we will accuse China only.

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[vasanth]

and allow Islamic terrorism to prosper?

Only an idiot will take 'em up on it.

[SEE]

Of course, there are always idiots who won't check what previously happened, or imagine that India surely won't do to them what it did to Nokia with the Chennai plant . . . .