In early August, Indian authorities abruptly restricted shipments of laptops, tablets and server equipment assembled outside the country, but agreed to postpone the deadline for imposing restrictions to November 1 following that decision, which caused confusion among market participants . At least 32 companies have already agreed to participate in the government-sponsored localization program for the release of laptops and tablets.
He announced this in an interview with one of the Indian TV channels, as explained by Reuters, Minister of Information Technology of India Ashwini Vaishnaw. According to him, among the companies that have already expressed a desire to localize the production of laptops and other electronic devices that are subject to a license when importing electronic devices are HPE (supplies server hardware), Dell Technologies, Asus, Acer and Lenovo noticed. The localization program is expected to attract up to $294 million in additional investment and create 75,000 direct manufacturing jobs. Over the six years of program implementation, total sales from local businesses will reach $40.5 billion.
How adds BloombergIndian authorities are ready to allocate $2.1 billion to subsidize localization of production of laptops, tablets and server devices. Companies setting up production of the desired range of products in India can receive up to 5% of the cost of each device. In addition, the local supply of components is promoted. Local businesses are among the 32 applicants to participate in the program.
As part of this program, funding will be awarded to selected companies in the coming year. Apple has not yet applied for the program. Subsidies can be unevenly distributed, as shown by the practice of implementing such a program for localizing smartphone production. The winners are those companies that are able to quickly increase production volumes. The authorities impose certain requirements on the rate of production expansion to the subsidy recipients. If these do not fit into the schedule, the amount of the subsidy can be reduced by 10%.