Government Might Offer Benefits To Handset Makers In Upcoming Budget: Report

The Indian government is all set to introduce a new budget soon for the upcoming financial year and almost all sectors are seeking grants from the government. Now, it has been reported that the upcoming budget might bring some good news for the handset makers.

According to the Economic Times report, the government is reportedly planning to provide Rs. 36,000 crore fund to the handset makers, so that they can bring high-end manufacturing firms in the country.

"MeitY (Ministry of Electronics and Information Technology) is working on a production linked incentive and there will be certain rigid criteria to avail this incentive. We only want those companies which are going to make India an electronics manufacturing and export hub to be able to use this incentive," one of the officials was quoted by the newspaper.

The official intimated that this move will attract global supply chains like Apple and Samsung, making India as their export hub. Besides, there are chances that the government is likely to offer credit guarantee schemes and interest subvention schemes to the domestic handset makers like Lava, allowing the brand to become a competitive player in the affordable segment.

For the unaware, Prime Minister Narendra Modi has recently met all smartphone players to understand the current situation of the industry and how to bring more manufacturing firms here. "The new scheme is most likely also going to be a form of duty credit scrip," another senior officer told the newspaper.

It is expected that this news will definitely help all smartphone makers like Foxconn which manufactures phones for Samsung and Apple. In fact, the Chinese smartphone maker such as Vivo and Oppo are planning to invest more in their plants, so if this happens then this will help them too.