The Ministry of Electronics and IT (MeitY) is all set to approve investment proposals worth Rs.29,500 crores to fortify manufacturing activities within India. The proposals, if approved, will bolster the indigenization drive of Make in India program as a whole.
Currently, the new proposals are under the preliminary stage of assessment, as financial partnerships and technology supports are yet to be finalized. Under the Make in India initiative, around 72 mobile phones and component manufacturing facilities have commenced operations in the country. The total investment figures for setting up these manufacturing units stand at Rs.1.3 lakh crores.
“The ministry at present is reviewing as many as 80 fresh proposals from budding enterprises and industry giants” says Ajay Kumar, Additional Secretary for MeitY. The government is also looking forward to partner with global investors to accelerate production as well as consumerism in the domestic market, he adds.
The fiscal year 2015 saw tremendous progress under the Make in India initiative—with 110 million mobile handsets being manufactured locally—entailing a total investment of Rs.18,900 crores. However, keeping the progressive efforts lively, the Government plans to increase mobile productions two-fold when compared to the previous year’s figures. In line with this, the cabinet has announced the Modified Special Incentive Package Scheme (M-SIPS) to be sanctioned for companies seeking rebates.
The electronics department has allowed a number of mobile component manufacturers to start operations, which will positively impact the employment sector at various levels. This includes makers for electronic components, chargers, camera modules, keyboards, etc.
But on the contrary, the budget 2017 has proposed a 2% special additional duty (SAD) on all imported Printed Circuit Boards (PCBs). According to industry experts, such a move from the government is likely to hamper the production efforts made under the Make in India program.