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Finance Minister Nirmala Sitharaman on Saturday said a scheme on encourage manufacturing of mobile phones, semiconductor packaging and electronic equipment is on the anvil. Making the announcement in the Budget speech, she said: “There is a cost advantage for electronics manufacturing in India”.
But she says that this needs more investment. “I propose a scheme to encourage manufacturing of mobile phones, semiconductor packaging and electronic equipment”, she said, adding this can be used for manufacture of medical devices as well.
A detailed scheme with details will be released soon, the FM said.
A Modified Special Incentive Package Scheme (MSIPS) to promote aggressively a 20-odd component manufacturing ecosystem in the country that will go beyond making mobile phones could be on the anvil. This could be an overarching policy that goes beyond interest subvention and credit default guarantee and it will be outside the scope of MeitY (Ministry of Electronics and Information Technology) and by an outside department/arm since ministry’s role is that of a policymaker only.
M-SIPS was first floated to encourage electronics manufacturing and it ran from 2012 to 2018. It promised multiple incentives for 10 years, including a capital subsidy of 20 percent in special economic zones (SEZs) and 25 percent in non-SEZs, and reimbursements of countervailing duty or excise on capital equipment for non-SEZ units.