Indian State Approves Financial Incentives for Samsung Display Factory

India has been increasingly looking to attract investments from major companies around the world. The idea behind the “Make in India” scheme was to ensure that multinational corporations can set up factories in India to help the Indian economy grow more rapidly. Thus, in order to achieve these goals, India has been trying to improve its ease of doing business ranking. This has been successful so far, with the World Bank’s ease of doing business 2020 report showing that the country ranked 63rd out of 190 countries. 

To top it off, Uttar Pradesh, a state in Northern India, also recently announced its plans to give financial incentives to Samsung, which is one of the world’s largest technology companies. The total value of these financial incentives is around $650 million and includes direct rebates, tax benefits, and land allocation. Samsung has been looking to move its display manufacturing out of China, which is perfect for India as it aims to replace China as the world’s manufacturing hub. This new factory could prove to be an important step towards attracting global firms to India. Moreover, in early 2020, New Delhi also approved financial incentives for 16 companies like Samsung, Foxconn, Wistron, and Pegatron, to boost domestic smartphone production.

The new factory is expected to create more than 500 jobs in Uttar Pradesh and may even be fully operational before the end of 2021. It is worth noting that Samsung already operates one of the world’s largest mobile phone manufacturing plants in the same state. This new transaction could thus strengthen business terms between Samsung and Uttar Pradesh while also helping the state bring other major manufacturing units to the country.

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