ICEA has welcomed the revised draft on the National Policy on Electronics (2018). The new policy is more comprehensive and will provide the required competency to the sub-sectors.
“The NPE 2018 is a roadmap that understands the significant opportunity and lays the way forward for the development of the electronics sector in the country. The draft policy is holistic and a progressive step towards establishing India as a large electronics manufacturing destination”, says Mr. Pankaj Mohindroo, Chairman of India Cellular & Electronics Association”.
ICEA is grateful as many of the changes suggested by them were incorporated in the new draft. The new draft NPE 2018 has engulfed an enormous number of issues after humongous consultations made progressive recommendations which are directed towards achieving the vision, to establish India as the global manufacturing powerhouse for the electronics ecosystem. It further concentrates on exports, creating value addition and generating employment.
The policy is looking to create new schemes like Interest Subsidy and Credit Default guarantee to encourage new electronics manufacturing units. The interest subsidy/subvention will be extremely competent for setting up the mobile handsets, its components ecosystem and the entire electronics vertical. It will help the entire ecosystem to be more competitive in the global market. The credit default guarantee scheme will help starts ups, entrepreneurs, SMEs to set up their business without any collateral. This, in turn, will help India to move a step forward in achieving the vision to become the manufacturing hub of the world. The draft NPE 2018 will help in promoting the domestic manufacturing and compensating for disabilities.
Mr. Mohindroo further added that, “This is a golden opportunity for India to establish a globally competitive manufacturing ecosystem and achieve the goal set by our Honorable Prime Minister, to be a leading electronic manufacturing hub”.
Hence, to capitalize on this opportunity it is essential to have special incentive package for developing Indian champion companies who can go global, replacement or supplement for M-SIPS with easy to administer Champion Incentives – example, CGST refund as now made applicable in the Hill states and North-Eastern states. Lastly, a competitive direct tax regime is necessary for India to become the global manufacturing destination.