Electronics Manufacturing: Bright Spots
The Modified Special Incentive Package Scheme (MSIPS) provides CAPEX subsidy of 20-25% Close to 20 clusters for Electronics have been approved. Many states have created their own Electronics Manufacturing policy. Mobile manufacturing has taken off in its first phase and 45 new factories have come up creating employment of 1 Lakh. Electronic Development Fund – a fund of funds has been set up and this is managed by Canbank Ventures Fund. Some key companies who have invested in India and have also shown their inclination to invest are – Wistron, Foxconn, Samsung, Twinstar, Dixon, Delta, Intex, Boeing etc.
Although all kinds of IT products were being manufactured in India by now- including desktops, servers, laptops, tablets, mobile phones and handheld devices – the import content was high and hence, the policy’s intention was to create depth in manufacturing by offering policy interventions to make manufacturing competitive.
The Make In India policy created in 2014 was also intended to make India a global design and manufacturing destination.
In 2015 a far-reaching Digital India initiative was created under which electronics was a key part of the programme. The target for the country was to be a NET ZERO import country by 2020, giving further fill up for electronics manufacturing.
As we stand today in 2017 and reflect on where the electronics manufacturing industry is going - we can see that there are some really bright spots. But the road is long and difficult and still more needs to be done to look at net zero imports by 2020.