6 March 2019
INDIA: Raft of Incentives Announced for Investors in Electronics Sector
A raft of new incentives is now on offer to prospective investors in the country’s export-oriented electronics manufacturing sector, including:
- 4% interest subsidy on loans of up to INR 10 billion (US$136.38 million) for the establishment of manufacturing plants and the procurement of machinery.
- A state-backed credit guarantee scheme covering 75% of any bank loan (up to a maximum of INR 1 billion) taken out for the express purpose of setting-up a factory or purchasing equipment.
- A state-sponsored sovereign patent fund dedicated to assisting in the acquisition of intellectual property rights (IPs) on behalf of electronic component manufacturers.
Overall, the measures are intended to help increase the country’s share of global electronics manufacturing from its 2017-18 level of 26.7% to 32% by 2025.