Government is working on a three-pronged approach to encourage growth of electronic manufacturing units and ensure Make in India programme a success.
The first is a shift towards a long term policy horizon so that the policy path is known and the end user has clarity in what is in store for the industry. Secondly, the taxation regime is to be made stable, and thirdly to put in place all support schemes.
“While electronics manufacturing has an advantage of a large consumer base, we have fallen behind in the production of components, which remains a challenge,” said Aruna Sharma, Secretary, Department of Electronic and Information Technology, at a conference on Championing Manufacturing in India.
MD, Deki Electronics Vinod Sharma said, the electronics industry has a promising future provided the problems characterized by 3Cs are addressed. These pertain to high cost of operation like finance, energy, logistics; complex and discretion based policy regime which leads to high transaction costs and corruption.
“India has huge potential to leverage its electronic hardware, storage devices, and computer services exports and diversify into quality information solutions,” says a working paper on the evolution and prospects of India’s exports.
The differential taxation between units operating within and outside SEZs would be abolished and equal treatment would be provided across units so that there is no perceived advantage for companies operating in SEZs, stated Sharma.