Recently Uttar Pradesh government has announced that it will offer financial incentives to Samsung Electronics to set up a $654.36 million (Rs. 4,825 crores) display factory. The tech giant of South Korea has been looking to increase its customer base after its Chinese counterparts Vivo, Redmi, Oppo, and Realme gained huge customer base in last couple of years. In a statement, the Uttar Pradesh administration announced that Samsung was moving the factory to the Norther State of India from China. The decision of Korean giant is likely to help lift Prime Minister Narendra Modi’s flagship drive to make India a manufacturing hub. With remarkable growth potential, India is the world’s second-biggest smartphone market. This has inspired firms such as Samsung to expand locally.
Earlier this year the Central Government of India gave its approval to financial incentives as a part of approx. ₹49,035 crores federal plan to boost domestic smartphone production. The Government has given its approval for 16 firms, including Samsung and top Apple suppliers Foxconn, Wistron, and Pegatron. According to Uttar Pradesh Government, Samsung will get ₹700 crores in financial advantages. Also, the firm will be freed from a tax payable on the transfer of land for the factory.
According to a Reuters report few days back, Samsung had asked for tax and other benefits from the state government for the smartphone display manufacturing plant. The manufacturing plant is likely to offer above 500 direct jobs and will probably become operational in 2021. Nevertheless, in Uttar Pradesh, Samsung already runs one of the world’s biggest mobile phone manufacturing units.