The government is drafting the upcoming National Electronics Policy (NEP) with increased focus on exports as it looks to harness the local capacity in electronic goods, including smartphones built for the domestic market, a top official told ET.
The idea is to ensure that there is no excess manufacturing capacity and instead utilise the same to build products for customers globally. India is producing close to 22.5 crore mobile phones and the total consumption is around 35 crore in India currently. According to ET, the official said that the rate at which the production is growing, it will soon reach the level of total consumption. This has created a stronger case for looking at how India can have a more export conducive ecosystem, the official added.
He further said that among other things, the policy will focus on increasing ease of doing business. Tarun Pathak, associate director at Counterpoint Research said that exports are a natural opportunity for India, and there is large market in Saarc countries, besides African and East Asian countries, which companies manufacturing in India can leverage. He added that in 2018, India can cross 300 million mobile phone production volume, which will be higher than 225 million achieved in 2017, which will also boost exports.
Considered to be one of the flagship schemes for boosting domestic manufacturing in the country, the Modified Special Incentive Package Scheme (M-SIPS) scheme, which was launched in 2012, will end in December this year. M-SIPS provides for 25% subsidy on capital investment along with a host of other incentives. It is unclear if the government will extend the M-SIPS policy after its term ends.
