International Electronic Companies To Invest Billions To ‘Make In India’
When Indian Prime Minister Narendra Modi came into power one of his commitments to the nation was that he would promote development and economic growth. The Prime Minister has chalked out a special ‘Made in India’ campaign and on every overseas visit, he does his best to encourage global companies to invest in India and make in India.
Modi has stated that his government would provide a number of breaks and benefits to international companies who are willing to invest heavily in India and set up a shop.
The Prime Minister has been in office for a little more than a year and his efforts have been bringing in results. The Indian government recently confirmed that in the last couple of months, it had received proposals from a number of prominent international companies who wanted to expand their operations and ‘Make in India’. The combined total of proposals that have come in during the last two months are in billions of dollars and amount to 90,000 crore rupees.
Most of these proposals have come in from the mobile phone and solar energy sectors as these companies recognized the fact that they have a lot of room to expand in India due to the cost of labor, quality of labor and the fact that the government is making it easy for them to go through all legal formalities. Some of the companies who have confirmed their interest in investing in India include Flextronics, Foxconn, Samsung, LG, Thomson, Phillips and Airbus.
India is currently the fastest growing smartphone market in the world and some of the biggest brands are looking to create a strong base in the country. Motorola, Xiaomi and Lenova have made deals with Foxconn and Flextronics to manufacture smartphones in India. CyberMedia Research recently published data which revealed that during the April-June 2015 quarter, 24.8% of smarthphones sold in India were also made in India. This was a significant increase when compared to the April-June 2014 quarter which saw a rate of 19.9%.
Ajay Kumar, additional secretary in the communications ministry stated that a number of prominent companies across the world were very interested in setting up manufacturing facilities in India. Kumar stated that during the last 12 months close to 1.10 lakh-crore rupees worth of proposals have come in and around 80% have kicked-off during the last 2 months.
The Indian government is confident that before the end of the year, some of the leading international brands across the world would commence setting up their manufacturing facilities after all legal formalities get rolled out.
