By Srabani Sen
My interactions with the industry have brought to the fore some interesting facts. The Department of Electronics and IT (DeitY) has supported the electronics industry with the Modified SIPS (M-SIPS) and Preferential Market Access policies. But how many people in the industry are aware of these policies? Unfortunately, those who do have some vague idea, seem to have more misconceptions than real knowledge about these policies. Many are of the opinion that companies will get monetary incentives or tax benefits by participating in the activities that these policies promote. However, these are all myths. Many others are under the impression that these policies are still in the draft stage. “When these policies get implemented, we will think about them,” said the country manager of a well known MNC. I also get calls from companies interested in knowing more about these policies. So if the industry, particularly the potential investors, are unaware of these policies, how can the government expect them to make investments based on what these policies offer?
What DeitY now needs to do is very aggressively market these policies. It has initiated some activities, but those need to be scaled up. The appraisal committee of the M-SIPS under the chairmanship of Rajiv Gauba, additional secretary, DeitY, interacts with the applicants of M-SIPS and shares real-time information. DeitY is also trying to reach out to investors and other stakeholders, with workshops and meetings being held with potential investors. Senior officials of DeitY are also meeting the companies in their offices to apprise them about the opportunities in the sector. According to Dr Ajay Kumar, joint secretary, DeitY, this reaching out to companies will be adopted as a general approach. Country-specific desks, and country-specific electronic manufacturing clusters are also being set up to meet the needs of potential investors. However, much more needs to be done and in a shorter span of time. “Responsiveness to requests for investment is critical to the success of these new policy initiatives,” admits Dr Ajay Kumar.
Industry associations also need to play an important role. They can act as extended arms of DeitY. “Very often, new investors reach out to these industry associations, and a knowledgeable response can make a world of difference in the final decision taken by the enquirer.” Dr Ajay Kumar proposes that the industry associations in this sector ought to create help desks for this purpose.
Write to me at: srabani.sen@efyindia.com
