In a statement, the Indian state of Uttar Pradesh said, it will provide financial incentives to Samsung Electronics Co to set up its $654.36 million (48.25 billion rupee) display factory in the state.
Samsung will be relocating the factory from China, said the Uttar Pradesh administration in a statement; the move will help boost Indian Prime Minister Narendra Modi’s flagship drive to make India a manufacturing hub.
The development assumes significance given that India is the world’s second-biggest smartphone market with a growth potential that has drawn companies, including Samsung to expand in the country.
Earlier this year, New Delhi has also approved financial incentive, under a $6.65 billion federal plan to boost domestic smartphone production, for 16 companies, including Samsung, Pegatron, Foxconn, and Wistron.
The Uttar Pradesh government will provide Samsung 7 billion rupees in financial benefits along with tax exemptions on the transfer of land for the factory.
Samsung has sought tax and other incentives from the Uttar Pradesh government for installing the smartphone display manufacturing factory.
The display factory is expected to create at least 510 direct jobs and is scheduled to be operational next year.
Samsung already operates one of the world’s biggest mobile phone manufacturing plants in Uttar Pradesh.