India is aiming for a US$400 billion electronics manufacturing industry by 2020, which means the industry must increase by more than five times over the next seven years.
The government hopes the subsidy, which is capped at US$8.7 million (500 million rupees), will encourage the build of 200 Indian EMCs by 2020, according to Department of Electronics and Information technology Secretary J. Satyanarayana.
"We are that we are draining our foreign exchange. So, manufacturing is of course the focus area for us in the latest National IT Policy (2012). We are looking at an the size of US$400 billion by 2020, from US$70 billion now," said Satyanarayana.