On Friday, the government of Uttar Pradesh said it would give South Korea's Samsung Electronics financial incentives to set up a display factory worth $654.36 million (Rs. 4,825 crores).
Samsung is relocating the factory from China to the state, the Uttar Pradesh administration said in a statement, a development that will help boost the flagship drive of Prime Minister Narendra Modi to make India a production hub. India is the second-largest smartphone market in the world with tremendous growth potential, which has forced businesses like Samsung to expand locally.
New Delhi also approved financial incentives earlier this year for 16 firms, including Samsung and top Apple suppliers Foxconn, Wistron, and Pegatron, under a federal programme of $6.65 billion (approximately Rs. 49,035 crores) to improve domestic smartphone production.
Uttar Pradesh said on Friday that Samsung would receive financial benefits of Rs. 700 crores and will also receive an exemption from a tax payable on the transfer of land for the factory. Reuters has previously stated that Samsung had pursued tax and other incentives from Uttar Pradesh for this smartphone display manufacturing facility.
It is expected that the unit, expected to generate 510 direct jobs, will be operational next year. In Uttar Pradesh, Samsung already operates one of the largest cell phone manufacturing plants in the world.