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India gets $14B investment offers for electronics segment

Posted: 24 Aug 2015     Print Version  Bookmark and Share

Keywords:electronics  manufacturing  mobile phones  MSIPS  smartphone 

The last two months saw an exciting time for electronics manufacturing industry as the government received about $14.17 billion (₹ 90,000 crore) investment proposals, according to the Hindustan Times.

"About ₹ 90,000 crore worth of proposals were received in the last two months. There is hardly any company, which has not shown interest to manufacture in India," the paper quoted Ajay Kumar, additional secretary in the Ministry of Communications and Information Technology.

Many of the local and foreign companies that offered to invest in the country had plans on manufacturing mobile phones.

"There is significant interest in mobile phones. Now we are seeing a lot of players are coming in, both Indian companies and foreign ones. They are increasing their presence here," Kumar said.

According to Strategy Analytics, India is among the fastest-growing smartphone market globally and is expected to replace the United States in the second spot after China in the years to come. This makes the country an attractive destination for making mobile phones.

In the last 12 months, the government has received about $17.32 billion (₹ 1.10 lakh-crore) worth of proposals for electronics manufacturing under the modified special incentive package scheme (MSIPS). And in the last two months, over 80 per cent of this have already turned up.

Other multinational companies, such as Samsung, LG, Thomson, Airbus, Phillips and Flextronics, have also expressed intent to manufacture their products here.

A report by CyberMedia Research revealed that during the April-June quarter, 24.8 per cent of smartphone sold in the country were made locally, an increase of 19.9 per cent from the previous quarter.

Earlier, China's Xiaomi partnered with Foxconn, the world's biggest electronics contract manufacturing company, to make smartphones in Andhra Pradesh.

The deal came after Taiwan's Foxconn revealed its $5-billion investment for a new facility in Maharashtra, which many consider as the biggest feat so far of the Make in India campaign by Prime Minister Narendra Modi.

Motorola and Lenovo have also begun assembling smartphones in the country through contract manufacturing by Foxconn and Flextronics, respectively.

- Stephen Padilla

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