Indian investment body urges incentives for $700 mil. Samsung display factory: report
NEW DELHI, NNA - India’s investment promotion body has recommended that Samsung Electronics Co. get tax breaks and other incentives from India’s northern state of Uttar Pradesh where the South Korean company plans to invest 53.67 billion rupees ($704 million) in a smartphone display manufacturing plant, news agency Reuters reported Tuesday.
In a letter seen by Reuters, Invest India said the plant would create 1,300 jobs and that Samsung could benefit from incentives over 20 years. The letter suggested reimbursing Samsung for its spending on information technology infrastructure, the report says.
Samsung last year signed a memorandum of understanding with the Uttar Pradesh state government on opening the factory, which is likely to start up next year, the report says.
The new factory means Samsung is relocating factory work to India from China, the Reuters report says, citing a source familiar with the matter.
Invest India said in its letter the Indian government should promote investments with fiscal as well as non-fiscal incentives as rival export powerhouses such as Vietnam, Indonesia and Thailand offer incentive packages based on an investor’s capital expenditure, the report says.
Indian newspaper The Economic Times reported in May of 2019 that Samsung had set up two new component manufacturing entities in the country. Samsung saw the government’s “Make in India” investment promotion effort as a chance to expand, the Times said. Taxes on imported mobile phone parts and consumer electronics were rising then as well.
Invest India, set up in 2009, is a nonprofit venture under India’s Department for Promotion of Industry and Internal Trade, the Ministry of Commerce and Industry.