Indian government has significantly increased the allocation for incentive schemes like Modified Special Incentive Package Scheme (M-SIPS) and Electronic Development Fund (EDF) to Rs 7.45 billion in 2017-18, as it looks to make the country a global hub for electronics manufacturing.
During his budget speech for the year 2017-18, finance minister Arun Jaitley said they have received over 250 investment proposals for electronics manufacturing in the past 2 years.
“We are also creating an ecosystem to make India a global hub for electronics manufacturing. A number of global leaders and mobile manufacturers have set up production facilities in India.” he said adding that this is an all-time high allocation for the program.
Last month, the union cabinet had approved a modified version of M-SIPS scheme that incentivizes electronics manufacturing in the country. Approvals under this scheme were accepted till December 2018 or till an incentive commitment of Rs 10,000 crore is reached and the time frame for the incentives was fixed at five years.
The policy incentivises electronics and component makers to manufacture domestically by providing them a host of incentives including 20-25 per cent subsidy on capital expenditure.
By Baishakhi Dutta
