Subsidies lure firms in India's electronics push
General Electric and Nidec among companies seeking Indian government incentive aimed at boosting economic growth
General Electric and Nidec are among companies looking to take advantage of a subsidy India is offering for electronics manufacturing as part of efforts to boost economic growth.
The Indian government had received at least 60 applications, with about half of them approved, for a subsidy of as much as 25 per cent on capital investment, said Ajay Kumar, a senior official in the Department of Electronics and Information Technology.
More than 40 submissions were made after Narendra Modi became prime minister in May last year.
While the incentive was introduced by the previous government, the number of proposals is rising as Modi takes steps including allowing more foreign direct investment in industries such as railways to boost economic growth.
He wants 100 million factory jobs created by 2022 and the government is implementing an US$18 billion programme known as Digital India to expand high-speed internet access and offer government services online.
"The subsidy is a very good investment scheme that existed before Modi, but it wasn't marketed very well," said Sunil Kumar, a compliance officer at Nidec. "The government machinery is functioning better than before."