Two government officials told ET that the Ministry of Electronics and IT (MeitY) will push the finance ministry to approve additional incentives to attract electronics manufacturers into the country.
The sops include interest subsidy on loans, credit guarantees for plant and machinery and renewal of the Electronic Manufacturing Cluster (EMC) scheme after the earlier one ended last year, they told ET.
A senior government official told ET that they have a window of 6-12 months to attract companies that are relocating to India, so we need to move fast.
Recently Manufacturers Association of Information Technology (MAIT) along with its industry representatives held a meeting with Ravi Shankar Prasad, IT Minister, Ministry of Electronics and Information Technology and other senior Government officials. The agenda of the meeting was to discuss the way forward on the growth of the electronics and IT manufacturing industry in India.
In a bid to woo manufacturers, Finance Minister Nirmala Sitharaman also slashed the effective corporate tax from 30 percent to 25.17 percent. She also announced that new domestic manufacturing companies incorporated after October 1 will pay the income tax at the rate of 15 percent.
Earlier, MeitY also proposed new incentives to promote Indian electronics manufacturing. The proposal included 4-6 per cent interest rate subsidy on loans for new investments, renewal of the electronics manufacturing cluster (EMC) scheme and waiver of collateral for loans taken to set up machinery.