Uttar Pradesh, one of the northern states in India, said it has approved financial incentives to South Korea’s Samsung Electronics to set up a $654.36 million display manufacturing unit.
Samsung is re-locating the display factory to the state from China, the Uttar Pradesh administration said in a statement. The move that will help boost Prime Minister Narendra Modi’s flagship drive to make India a manufacturing hub, Reuters reported.
India is the world’s second-biggest smartphone market with significant growth potential, which has driven companies such as Samsung to expand locally.
New Delhi earlier this year also approved financial incentives–under a $6.65 billion federal plan to boost domestic smartphone production — for 16 companies, including Samsung and top Apple suppliers Foxconn, Wistron and Pegatron.
On Friday, Uttar Pradesh said Samsung will receive 7 billion rupees in financial benefits and will also get an exemption from a tax payable on the transfer of land for the factory.
Samsung sought tax and other incentives from Uttar Pradesh for this smartphone display manufacturing plant. The unit, expected to create 510 direct jobs, is expected to be operational next year.
Samsung already operates one of the world’s biggest mobile phone manufacturing plants in Uttar Pradesh.