The Indian state of Uttar Pradesh is offering financial incentives to Samsung Electronics Co in a bid to set up a 48.25 billion rupees ($654.36 million) display factory

Right now, Samsung is re-locating the factory to India from China, in a bid to boost manufacturing in India.

Indian Prime Minister Narendra Modi has been attempting to boost local manufacturing, and has repeatedly asserted the need to make India a manufacturing hub. 

India has the world’s second largest market for smartphones, with a lot of room for growth. Due to this, companies like Samsung are heavily investing in local growth.

Earlier in 2020, India approved financial incentives to boost domestic smartphone production under 16 companies.

The central government’s $6.65 billion plan covers Samsung, and Apple suppliers Foxconn, Wistron, and Pegatron.

Uttar Pradesh government on Friday said that Samsung would get 7 billion rupees in financial benefits. In addition, the company would also receive exemption of tax payable after the land is given to Samsung for the factory.

Reuters had earlier reported that Samsung was seeking tax incentives from Uttar Pradesh for its display manufacturing plant.

The particular unit would create 510 direct jobs, and should be operational by next year. The company already has a mobile phone manufacturing plant in Uttar Pradesh, considered one of the world’s largest.

Over the last few months, China has faced increasing backlash as it pins blame on other countries for spreading COVID-19. As a result, most governments have become wary of Chinese activity in their regions.

India too, worries about Chinese influence in the country, and set out to achieve the goal of self reliance by banning a series of Chinese apps, local versions of which can now be accessed on digital marketplaces.