Tata investing in electronics sector with Apple

Tata group is the India’s largest groups in the world working in many countries in many different sectors. It one the biggest company in Asia. Now Tata sons are working with Apple an mobile manufacturing company in order to manufacture mobile phones and equipment’s.
Tata Sons is planning to setup a mobile phone and component manufacturing plant in Tamil Nadu to make iPhone parts and is seeking up to $1 billion through overseas loans for the same. The partnership with Apple will be part of Prime Ministers “Make in India” program. The Tata Group will avail the benefits under recently unveiled productivity-linked incentive scheme of the Modi.

What is productivity linked incentive

It is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units which is applicable for mobile and related equipment as well as pharmaceutical ingredients and medical devices. As these sectors are labor intensive , it is expected to capture the growing employment demands of the country and also this will give a boost to other companies to invest in India as a big brand is setting manufacturing plant.

Tamilnadu government has passed a policy named as Tamilnadu electronics hardware manufacturing policy 2020. Through which government is seeking to increase electronics output to 100 billion by the year 2025. This contribute 25 % of India’s electronic export in few years.

According to news reports Tata Group is investing 5,000 crore to set up a phone component manufacturing plant at the industrial complex in Hosur, Tamil Nadu. The new company. Tata Electronics, has been allotted 500 acres by TIDCO(Tamil Nadu Industrial Development Corporation).