new delhi indias latest set of incentives to entice businesses moving away from china seem to be working with companies from samsung electronics co to apple incs assembly partners showing interest in investing in the south asian nationprime minister narendra modis government in march announced incentives that make niche firms electronics manufacturers eligible for a payment of 46 of their incremental sales over the next five years the result about two dozen companies pledged 15 billion of investments to set up mobilephone factories in the country besides samsung those that have shown interest are hon hai precision industry co known as foxconn wistron corp and pegatron corp india has also extended similar incentives to pharmaceutical businesses and plans to cover more sectors which may include automobiles textiles and food processing under the program advt while companies have been actively looking to diversify supply chains amid the uschina trade tensions and the coronavirus outbreak it hasnt yet translated into big gains for india despite the nation making it cheaper for businesses to open shop vietnam remains the most favored destination followed by cambodia myanmar bangladesh and thailand according to a recent survey by standard chartered plcthere is a reasonable chance for india to gain in terms of incremental investment of supply chains within the country over the medium term said kaushik das chief india economist at deutsche bank ag in mumbai these programs are aimed at increasing indias manufacturing share in the gross domestic producteconomic boostthe government expects the program for electronics alone could lead to 153 billion worth of manufactured goods over the next five years and create about one million jobs directly and indirectlythis would bring an additional investment of 55 billion over five years adding 05 to indias economic output according to analysts led by neelkanth mishra at credit suisse group ag this could shift an additional 10 of global smartphone production to india in five years most of it from china they wrote in a report august 10that complements modis goal to grow the share of manufacturing in the economy to 25 from the current around 15 as part of his make in india program his government has already lowered taxes on companies to among the lowest in asia seeking to attract new investments in an economy headed for its first contraction in more than four decades this year advt the latest outputlinked incentive plan is a big win for make in india amish shah an analyst at bofa securities said in a report to clients he sees gains for industrials cement pharmaceuticals metals and logistics with longterm indirect benefits across many sectors bloomberg published on aug 17 2020 at 0107 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred