Chief Minister of Uttar Pradesh Yogi Adityanath has announced that the state will be giving financial incentives to South Korean multinational conglomerate Samsung Electronics to set up a $654.36 million (around Rs 4,825 crores) display factory.
According to a statement from UP administration, Samsung will be relocating the factory from China to the state, and will be helping in boosting Prime Minister Narendra Modi’s initiative of “Make in India”, that has been launched to make the country a manufacturing hub.
As India is the world’s second-biggest smartphone market with very high growth potential, is the biggest reason tech giants such as Samsung to expand facilities in the country, the expert suggested.
The Union Government in a move to boost domestic smartphone production approved financial incentives worth $6.65 billion (around Rs 49,035) for 16 companies, including Samsung and top Apple suppliers Foxconn, Wistron, and Pegatron.
Uttar Pradesh said Samsung will receive Rs. 700 crores in financial benefits and will also get an exemption from a tax payable on the transfer of land for the factory.
Apart from the approved financial subsidies, Samsung had sought tax and other incentives from Uttar Pradesh for the smartphone display manufacturing plant, media has reported.
With the upcoming venture of the South Korean giant in UP, it is expected that 510 direct jobs will be created after the facility becomes operational next year.
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Samsung already operates one of the world's biggest mobile phone manufacturing plants in Uttar Pradesh.
The multinational conglomerate which was established in 1938 as a trading company, has now diversified into various sectors including electronics, defence, construction and finance etc.