Samsung in Dispute with Indian govt over $110 Million Production Incentives

Ten News Network

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Delhi (India), 18th Jan 2023: Samsung, the South Korean electronics giant, is at odds with the Indian government over $110 million in production incentives.

The company had applied for the incentives under the government’s Production-Linked Incentive (PLI) scheme, which aims to boost domestic manufacturing and exports.

The Indian government, however, has denied Samsung’s application, stating that the company did not meet the conditions set out in the PLI scheme.

According to officials, Samsung’s investment in India did not meet the minimum threshold required for the incentives, and the company also failed to provide sufficient evidence of its exports.

Samsung, in response, has said that it has invested heavily in India and has been a major contributor to the country’s economy.

The company has also pointed out that it has been exporting a significant amount of goods from India, and that it has met all of the other conditions set out in the PLI scheme.

The dispute has raised concerns among industry experts, who say that it could harm Samsung’s business in India and also discourage other foreign companies from investing in the country. Some have also argued that the Indian government’s decision could be seen as a sign of protectionism and a lack of support for foreign investors.

The Indian government, on the other hand, has stated that it is committed to supporting domestic manufacturing and promoting exports, but that it will not provide incentives to companies that do not meet the conditions set out in the PLI scheme.

The PLI scheme was launched by the Indian Government in April 2020, to boost domestic production and exports of mobile phones and specified electronic components. It has attracted a number of other companies such as Foxconn, Wistron, and Pegatron, who have committed to investing in India.

Overall, Samsung’s dispute with the Indian government over $110 million in production incentives has raised concerns over the country’s support for foreign investors. The outcome of this dispute will be closely watched by other companies considering investing in India, and could have a significant impact on the country’s economy.

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