MAIT Congratulates MEITY & the Government of India (GoI) on a very progressive step towards boosting electronics manufacturing in India.
Two key recommendations have been taken from the MAIT study about India’s aspiration to become a major global hub for electronics manufacturing, namely
The series of steps taken by the GoI, beginning with reducing Corporate Income Tax to 15% followed by the Production Linked Incentive scheme is a major step by India in this direction.
India should now see large scale manufacturing happening in the country, translating into progressive increase in value addition from approx. 20% to 35-40%. The growth of ancillary units, engineering expertise, product engineering and software.
It is the major EMS companies that will be leading the manufacturing thrust like Flex, Wistron, Foxcon, Dixon and more.
What India should do to make it better?
The EMS & ODM’s are the companies that will lead the thrust and they make all kinds of electronic products. Thus, a framework that is product agnostic will see India emerge as a leader in multiple product categories, including those where much higher levels of value addition can be achieved. The industry hopes this exercise will also get extended to other electronic products such as IT, Datacom, Medical, Industrial etc.
What India should avoid?
The implementation of this framework is a new path the country is walking and a learning process for all stake holders. It is extremely critical to keep it simple.
It is now the Industries’ turn to rise to the occasion. The Brands need to take advantage of this to drive up demand allocation into India.
