Indian Government Weighs Up INR 1.68 Lakh Crore (USD 23 Billion) Package to Attract Foreign Manufacturers in Select Sectors.
Led by the Niti Aayog (the policy planning body of India), the government is planning to offer incentives worth INR 1.68 trillion rupees (USD 23 billion) to attract foreign companies to set base in India. The move is a part of the flagship Atma Nirbhar Bharat initiative aimed at self-sustenance, particularly in manufacturing. As per documents reviewed by Bloomberg News, it is believed that these production-linked incentives will target:
- Automobile Manufacturers
- Consumer Electronics Manufacturers
- Solar Panel Makers
- Specialty Steel Producers
Food Processing Plants, Specialised Pharmaceutical Products, and Textile units are also being regarded for these incentives. This comes after a successful incentive scheme for mobile phone manufacturers which saw 16 companies (including Samsung Electronics, Foxconn, and Wistron Corp.) pledge ~USD 1.5 billion to setup manufacturing facilities, with authorities paying them an amount equal to 4–6% of incremental sales over the next five years.