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Electronic goods policy will focus on exports

The draft policy suggested a 10-year tax holiday for companies investing over $1 billion in electronics

Policy Pulse
Publish Date: Oct 17 2016 3:10PM | Updated Date: Oct 17 2016 5:11PM

Electronic goods policy will focus on exports

NITI Aayog, the government’s think tank, has given out its first ‘Make in India Strategy for Electronic Products’. It has floated a policy which is more export-oriented and favours developing coastal economic zones as compare to previous policies. 

 

The previous policy paper had faced opposition from the Ministry of Electronics & Information Technology as well as reservations from other stakeholders mainly because of its domestic focus and its emphasis on semiconductors.

 

“They had floated a policy paper once that never went forward since many people had reservations on it,” a senior official quoted. The official added that the ministry is, however, fully supportive of the second draft paper submitted by the think tank. 

 

“They are talking of port-based electronic manufacturing clusters. They seem to have discussed it with the industry and then floated the paper. The paper nicely analyses the prospects. However, it is still a policy paper and may take some time to take shape,” the official said. 

 

“The idea is to promote greater exports of electronics and drive larger investments. We have achieved a certain level in terms of manufacturing so far and this will take it to the next level,” he said.

 

NITI Aayog had initially come out with a draft policy that sought to attract global electronic manufacturers to set up units in India and give a push to Prime Minister Narendra Modi’s pet project, Make in India.

 

The draft policy suggested a 10-year tax holiday for companies investing over $1 billion in electronics manufacturing or creating 20,000 jobs in India.