India announced close to $1 billion in incentives to persuade companies to make more computers within India, hoping to shrink its trade deficit and attract manufacturers trying to diversify away from production in China.
According to report by the Wall Street Journal, India’s cabinet Wednesday approved a rewards program for companies that expand local production of laptops, tablets and other computers. New Delhi said it would give companies cash equal to up to 4% of the value of their sales, depending on how much they increase domestic production over the four years starting April.
“Our focus is to bring the world’s top five global champions to India and produce for the world,” Minister for Electronics and Information Technology, Ravi Shankar Prasad said in a news conference. “Before announcing the incentives, we have had discussions with key manufacturers. They are just waiting.”
Indian authorities are already discussing the new incentives with Apple Inc. which has yet to start making laptops or tablets in India, as well as HP Inc. which has a presence in India, said one government official.
A spokesman for Apple India didn’t respond to a request for comment. On Wednesday, HP didn’t respond to an email seeking comment.
