Centre names four global companies to help increase IT product manufacturing

In a $1 billion incentive plan to develop and expand exports of laptops, tablets, and personal computers, the Indian government designated Dell Inc, Wistron Corp's ICT, Flex Ltd, and Foxconn's Rising Stars as its preferred global firms on Thursday.

In addition, ten firms were chosen, namely smartphone producer Lava and Dixon, which manufactures TVs for Xiaomi Corp in India, according to the government.

Manufacturers will get cash rebates of 1 to 4% of additional sales of locally manufactured items over a four-year period, using 2019-2020 as the base year.

As per the government, these firms are anticipated to generate 1.61 lakh crore of IT hardware and generate over 36,000 jobs over the next four years.

According to Reuters, the initiative is also likely to assist Apple Inc in assembling some of its iPad tablets in India.

Apple suppliers Foxconn and Wistron have expanded in India, while Pegatron Corp has established a facility there, owing to Prime Minister Narendra Modi's policy push in the electronics industry.

PM Modi's approach, along with India's massive market, has helped India become the world's second-largest mobile manufacturer behind China.

In order to reduce imports, New Delhi aims to duplicate the success of smartphone production with other gadgets.