India Approves Foxconn, Dell Investments in Domestic Tech Push

The Indian government has given the green light to investments by 27 major tech companies, including Foxconn, Dell and HP, as part of its $2 billion push to encourage more domestic IT hardware production.

Information technology minister Ashwini Vaishnaw said the companies are expected to invest 30 billion Indian rupees ($360 million) collectively as part of the incentive scheme, while creating 50,000 jobs in the sector.

Approvals have also been granted to domestic manufacturers including Dixon Technologies and VVDN, the minister said.

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The government had in May doubled the value of the incentive scheme to spur domestic production of laptops and tablets, following a lukewarm response to a previous programme.

The country is offering cash-backs to manufacturers on sales of locally-made goods that exceed an annual target.

The scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting an annual output worth $300 billion by 2026.

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.