January 21, 2015: Prime minister Narendra Modi’s ‘Make in India’ campaign is doing wonders to the electronics manufacturing industry. Latest reports have revealed that the government has already received 54 proposals, out of which it has approved 30 requests covering an investment amount of Rs 60 billion. The rest 24 are likely to be cleared before the end of this fiscal year. What’s more is the fact that the Centre has already received investment plans amounting to Rs 180 billion in the financial year 2015-16, as told to a leading national daily by Ajay Kumar, joint secretary in the department of electronics & IT.
Ajay Kumar has further revealed that this investment is likely to double in the future as the government is likely to take some steps with regards to the rationalisation of taxes. Narendra Modi’s government is said to have a target of cutting the net imports of electronics to zero by 2020 and in order to achieve this and hence attract more investments in the electronics manufacturing sector, the government is offering a payback of up to 25 per cent of capital expenditure. The incentives are available for a range of products including telecom, IT hardware, consumer electronics and semiconductor chips and chip components.
The government is already offering subsidies under the modified special incentive package scheme for 2013-14. This has already created an impact and the sentiments are rising among the investors. The confirmation of this came in the form of South Korean brand Samsung and Germany’s Bosch planning another round of investment under the the incentive package. Bosch Automotive had already invested Rs 5.5 billion in 2013 for manufacturing electronic control units, while Samsung invested a sum of Rs 4 billion for the manufacturing of devices and later got an approval to spend Rs 3.5 billion in its electronics facility in India.