Manufacturers’ Association of Information Technology (MAIT), released the report titled “Enhancing Export Competitiveness of India’s Electronic Hardware Manufacturing Ecosystem”. The report commissioned by MAIT, focuses on analysing the current ecosystem to outlining a combination of policy reforms, consisting of reimbursements of state and central tax levies, relaxation on corporate income tax and production-based incentives to boost the electronics manufacturing in the country. 

As part of its mandate of enhancing ‘export-led electronics manufacturing’, MAIT has worked out a roadmap for the electronics sector with specific emphasis on Mobiles, Datacom and PCs.

The government will soon announce a new industrial policy aimed at promoting growth of industries and creation of jobs.

Addressing the joint sitting of both Houses of Parliament, the President said work is underway in full earnest to transform India into a global manufacturing hub. "Keeping in view Industry 4.0, a new industrial policy will be announced shortly.

The new policy will replace the industrial policy of 1991 which was prepared in the backdrop of balance of payment crisis. This will be the third industrial policy after the ones released in 1956 and 1991.

The proposed policy aims at promoting emerging sectors and modernising existing industries. It will also look to reduce regulatory hurdles and encourage adoption of frontier technologies such as robotics and artificial intelligence.

An inter-ministerial panel set up by the Prime Minister’s Office (PMO) to develop India as a hub for electronics exports will release its policy, focused on how to further boost handset manufacturing, within one month, top government officials said.

A larger policy for the entire electronics manufacturing ecosystem will also be put in place in the next two to three months, which will include fresh incentives and sops to promote India as a global manufacturing hub. Electronics and IT minister said the time had come to make India a big hub for export of electronics and components. “India will offer you human resource, investor-friendly policies and incentives for making in India, and for exports,” he said, urging companies such as Apple and Samsung to expand their manufacturing base in India and use the country as an exports hub.

The Union Cabinet has approved the proposal for Review of Foreign Direct Investment (FDI) on various sectors.

Major Impact and Benefits from FDI Policy Reform

1. The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth.
2. In the coal sector, for sale of coal, 100% FDI under automatic route for coal mining, activities including associated processing infrastructure will attract international players to create an efficient and competitive coal market.
3. Further, manufacturing through contract contributes equally to the objective of Make in India. FDI now being permitted under automatic route in contract manufacturing will be a big boost to Manufacturing sector in India.