Electronics Manufacturing: Govt. introduces three incentive schemes in India
The Ministry of Electronics and Information Technology notified three schemes to incentivize the electronics manufacturing in India. The government has introduced the schemes worth Rs. 40,995 Crore. The Minister of Electronics and Information Technology, Ravi Shankar Prasad stated that taken these long-term policy decisions have been taken in order to improve the electronic manufacturing and medical electronics hub and also said “these schemes will play a big role in realising the dream of $1 trillion digital economy by 2025”.
The notification issued by the Ministry states that the scheme is focused on certain target segments like mobile phone and specified electronic components. According to the data published by the Ministry of Electronics and Information Technology, India manufactures 1.3% of the world’s electronic products. It is important to note that these developments in the manufacturing sector not only improves the standing of India’s electronics hub in the global space but also helps in the growth of employment opportunities as well. The schemes are thus, expected to generate 8 lakh jobs in the coming years, out of which 6 lakh jobs shall be generated through indirect employment and 2 lakh jobs through direct employment. Under these schemes, the companies that manufacture mobile phones priced at Rs. 15000 and above and make a cumulative investment of Rs. 1000 crore over 4 years beginning with Rs. 250 crore in the first year will qualify for incentive of 6% for the first two years and 5% for the next two and 4% in the fifth year. These provisions shall be applicable from August 1 and the implementation of these schemes will be supervised by an Empowered Committee comprising of the CEO of NITI Aayog, Secretary Economic Affairs, Secretary Expenditure, Secretary Revenue, Secretary Ministry of Electronics and Information Technology, Secretary Department for Promotion of Industry and Internal Trade and Directorate General of Foreign Trade.
