Corporate tax relief to boost investments in India’s local manufacturing ecosystem: Handset makers

Kolkata/New Delhi/Mumbai: Consumer electronics and handset makers such LG, Xiaomi, Dixon Technologies and OnePlus said that Friday’s tax cuts will boost investments into India’s local manufacturing ecosystem, including into research and development (R&D), encourage component suppliers to set up shop and generate employment.

“We have been continuously investing in India and such reforms will give a boost to business, encouraging more investment in domestic manufacturing,” Ki Wan Kim, managing director, LG Electronics India, told ET.

China’s Xiaomi, the leading smartphone maker in India, agreed with the minister, saying the government’s move will generate employment and encourage more investments in local R&D. It said it was “hopeful” that it would be able to “bring more of our component suppliers to India and help boost the local manufacturing industry further”.