At the beginning of August, Indian authorities suddenly limited the supply of laptops, tablets and server equipment assembled outside the country. However, after decision that caused confusion among market participants, they agreed to postpone the introduction of restrictions until January. At least 32 companies have already agreed to participate in a government-approved localization program for the manufacture of tablets and laptops.
Image Source: Dell Technologies.
This was made public in an interview with one of the Indian TV channels, explained by the Reuters, the Indian Secretary of Technology, Ashwini Vaishnaw. According to him, among the companies that have expressed their desire to localise the production of laptops and other items subject to licensing in case of import of electronic devices, HPE (supplies server equipment), Dell Technologies, Asus, Acer, Lenovo and Toshiba have been noticed. The localization program will attract up to $900 million in additional investments and create 75,000 direct manufacturing jobs. In the six years of programme implementation, the total revenue of local businesses will reach $40.5 billion.
In addition, India has a projected target of 22.1 billion dollars to support the localization of the production of tablets, laptops and servers. Companies that establish the production of the required kind of products in India can receive up to 5% compensation from each device’s cost. As well, local supplies will be encouraged. There are 32 applicants for the program, from local businesses.
This programme is going to begin to give a grant to selected companies next year. Apple hasn’t demanded to participate in the program yet. As we can see, Subsidy funds can be distributed in half a year, a simple example of implementing a similar program where people can localize smartphones. The winners were those companies who can quickly increase production volumes. The authorities will allow the allocation of subsidies for the expansion of production. If the subsidies don’t meet the schedule, the amount could be reduced by 10 percent.
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