The government plans to bring in new incentives and schemes to attract global firms from countries like Japan, Taiwan and South Korea to set up their manufacturing base into India.
The new electronics policy to be unveiled soon and will focus on opening up Indian market for exports, a senior official from the ministry of IT and electronics told DNA Money. “The plan is to attract sub-assembly manufacturers in India,” the official said.
New incentives will be offered for achieving this objective, while the existing ones such as Modified Special Incentive Package Scheme (MSIPs) and electronic cluster scheme might be phased out.
“The market size for assembling is around 34-35 crore units per year and currently, we are doing 22.5 crore units per unit. The next move is to open the market for exports to realise the true potential of the Indian market,” the official further said.
Apart from the assembly line, there are about 300-400 suppliers whose components go into electronic goods. The government plans to tap such suppliers to set up their base in India.
The draft of the new policy is expected to be ready in a month. According to Make in India Strategy for electronic products prepared by Niti Aayog in 2016, India has not had much success in penetrating the export markets so far. At $6 billion, India has less than 1% share in the world markets.