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The Indian authorities are ready to allocate $ 1 billion to each company that will launch the production of electronics in the country
31.03.2021 [13:58],
Alexey Razin

When discussing the latest trends towards «technological nationalism», it is customary to often mention the United States, China and the countries of Europe, but India does not want to stand aside either. According to some reports, local authorities are ready to provide $ 1 billion to each foreign company that decided to localize the production of electronics and semiconductor components.

Image source: Reuters

Backed by Prime Minister Narendra Modi, the Make in India initiative has already turned the country into the second largest mobile device manufacturer after China. Now the Indian authorities believe, as noted by Reuters, that it is time to bring semiconductor manufacturers to the country. A senior official, who asked not to be identified, told Reuters that the Indian authorities intend to provide each such manufacturer in subsidies of more than $ 1 billion.

The country’s authorities are ready to provide manufacturers with guarantees for the sale of products manufactured in India. Firstly, local products will be purchased by government agencies. Secondly, the needs of the private sector will also be taken into account. While such initiatives are under discussion, and the Indian authorities have not yet decided how they will be able to justify such subsidies.

Components released in India, according to officials, will be considered reliable, and therefore will be used in communication and video surveillance systems, as well as other elements of vital infrastructure. Whether there were any candidates among the candidates wishing to go to the localization of production, the sources do not specify. In December, such interest was observed, and the Indian consortia, according to the plan of the authorities, could alternatively acquire an enterprise for the production of semiconductor components outside the country.

Indian auto industry needs semiconductor chips too. According to the authorities, the construction of a specialized enterprise in the country will take from two to three years and at least $ 5-7 billion in investments. The government is ready to provide companies with customs incentives, partially cover research costs and provide interest-free loans.

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